Bullish FII bets help benchmark indices edge higher

However, weakness in RIL and ONGC dragged Nifty below 6,500

Markets closed marginally higher amid choppy trades with bullish bets from foreign institutions supporting the gains. For the day, the Sensex closed 14 points higher at 21,754 while the Nifty slipped below the 6,500 levels to end the session at 6,493, a 10 point gain.

Overseas investors bought shares worth of $117.87 million on Thursday, marking their 23rd buying session in the previous 24, provisional exchange and regulatory data shows.

Broader markets were resilient with the midcap and smallcap indices gaining nearly a percent each as compared to the marginal 0.06% gain seen on the BSE benchmark index.

Earlier in the day, the markets started on a firm note tracking robust Asian cues. However, markets failed to build on its opening gains as weakness in Oil & Gas major weighed on the benchmark indices and dragged it into the negative territory in afternoon deals.

The rupee was quoting at 61.01 vs previous close of 61.34/35, though off lows of 60.98.

Sectors & Stocks

Oil& Gas and Heath Care indices down 1.8% and 0.2% respectively were the only sectoral indices in the negative.

Metal and Realty indices up 1.9% each were the major sectoral gainers.

Banking index advanced 0.6% along with Power, Consumer Durables, Auto and IT indices up 0.6-0.7%.

Metal tocks like Tata Steel and Hindalco up 3.-3.5% were the top gainers among Sensex-30. Sesa Sterlite and Coal India added 1.6% and 1%.

All the IT majors gained in today's trade. Wipro was up 3% on heavy volumes. TCS gained 0.8% while Infosys shrugged off the negative news of a high level exit and closed flat with a 0.07% gain.

FMCG majors ITC climbed up 0.5% while HUL was flat.

Axis Bank closed 2.7% higher after the government sold 9% stake held by the Specified Undertaking of UTI (Suuti) in the bank via block deals today.

SBI and HDFC Bank were the only other financial names in green, up 0.4-1.5% among Sensex-30.

Tata Motors, Tata Power and BHEL were the other prominent gainers adding 1.6-2.4%.

Oil & Gas majors RIL and ONGC were under pressure and slid 2-3% and were among the top Sensex losers.

Hero MotoCorp, Sun Pharma, NTPC, Bharti Airtel and Mahindra & Mahindra down 0.8-2% were the prominent losers.

The market breadth was positive on the BSE as broader markets gained. 1,579 stocks advanced while 1,257 stocks declined.

Smart Moves

Shares of tyre companies were in demand and trading higher by up to 16% on the bourses on back of heavy volumes. Ceat, MRF, Goodyear India, JK Tyre, Apollo Tyres and TVS Srichakra have rallied in the range of 5-16%. Most of these stocks are trading at their multi-year highs.

Adani group Flagship Company Adani Enterprises moved higher by 4% to Rs 327 after one of its promoter released pledge shares.

Mercator soared to 15% to Rs 24.25, also its 52-week high on the BSE, after the company said it has acquired one 1992 built very large gas carrier (VLGC). The company did not disclose the price at which it was bought.

TVS Motor Company gained 3% at Rs 96.40, extending its over 8% rally in past one week, on back of heavy volumes on the bourses.

Sunil Hitech Engineers advanced 9% to Rs 67 after its board has allotted 1.35 million shares of the company upon conversion of warrants to the promoter group.

IL&FS Engineering and Construction Company rallied 9% to Rs 40 after the company said it has bagged a Rs 69.97 crore contract for construction of elevated depot cum workshop for the Rapid Metro Rail Gurgaon.

Global Markets

Asian markets found their footing on Friday after Wall Street shook off concerns about Federal Reserve policy, while a spike in U.S. bond yields kept the dollar underpinned near three-week highs.

After falling sharply on Thursday, regional stocks battled to regain some of the losses. The Australian market edged up 0.7 percent while MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent.

Hong Kong and China stocks also rebounded, despite growing concerns about fallout from China's economic slowdown and a further slide in the yuan to 13-month lows.

Japan's Nikkei was not able to share the relief because markets were closed for a holiday.