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Markets gain as RIL, Bharti Airtel stocks rally

RIL closes in on Rs 1-lakh-crore m-cap mark

BS Reporter & Agencies  |  Mumbai 

Statsguru: Rational or irrational exuberance?

The Indian on Monday gained a third of a per cent amid a sharp rally in and (RIL). 

The Sensex gained 117 points, or 0.36 per cent to end at 32,507, while the Nifty50 index added 38.3 points, or 0.38 per cent to close at 10,185. 

Shares of gained five per cent to Rs 497.5, the most in more than a decade, after Morgan Stanley upgraded the stock with an “overweight” rating. Meanwhile, gained three per cent to a new lifetime high of Rs 938. The Mukesh Ambani-led company has seen its stock price double in the past one year with its market value nearing the Rs 6-lakh-crore mark.

Telecom shares have been gaining after Reliance Industries’ telecom arm Jio raised tariffs. Shares of Idea Cellular gained eight per cent on Monday.

“Market regained after a weak start due to expectation of earnings growth and positive global growth. Telecom sector outperformed on value buying in expectation of normalisation of tariffs, consolidation in the industry, and better outlook on data usage,” said Vinod Nair, head of research, Geojit Financial Services.

made a 97-point contribution to the Sensex, while Bharati Airtel added 28 points. 

ICICI Bank, which rose 1.8 per cent, made a contribution of 32 points. Meanwhile, losses in index heavyweights HDFC and ITC dragged the Sensex down by 70 points.

In the previous trading sessions on Thursday — the one-hour ceremonial Muhurat trading session — the benchmark indices had posted losses of 0.6 per cent. The market was shut on Friday due to Diwali.

“We remain a long-term bull on India, as reflected in the nearly three times overweight in the relative-return portfolio and the 54 per cent weighting in the Asia ex-Japan long-only portfolio,” Christopher Wood, chief equity strategist at CLSA Ltd, wrote in a report. “There is the potential for some short-term vulnerability, and at least relative underperformance.”

On year-to-date basis, the Sensex and have gained 22 per cent and 24 per cent, respectively.

Overseas investors on Monday sold shares worth Rs 81 crore, while domestic investors were net-buyers to the tune of Rs 308 crore. Since August, overseas investors have pulled out around $4 billion from the domestic market. Mutual funds have been net pumped in close to $8 billion during the same period.

First Published: Tue, October 24 2017. 00:01 IST