'Hope rally' in play as market breaches previous high

ICICI and HDFC Bank, ITC, HDFC and Reliance Industries, are the top Sensex gainers collectively accounting for 143 point surge in Sensex

 

After some sessions of consolidation, market resumed its race to the top on Monday as benchmark indices resumed the 'hope rally' with banking stocks leading the way.  

Benchmark indices Nifty and Sensex breach their previous highs on Monday as investors hope that 2014 general elections will install a business and investor friendly government that will spur growth and boost the investment cycle in the economy.

The 30-share BSE Sensex surged 248 points or 1.1% higher to 22,003 levels, it touched its record high level of 22,047.

The 50-share NSE Nifty surged to a new high of 6,580 on Monday, it was last seen trading at 6,568 levels, up 74 points from its previous close.

Market participants are now speculating if Nifty will break 6,600 mark on Monday while technical analysts expect the benchmark index to make new highs going ahead.

Ranak Merchant, Technical analyst at Sushil finance  says "Nifty managed to surpass the earlier barrier of 6570 zone (high was 6575), by a small margin (today's high 6581). But as indicated earlier index wise gains may be limited (some consolidation to unfold) while stock specific action would continue. Sustenance of index above the 6570 imperative for new run to unfold."

(Update at 10:36am)
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Private lenders ICICI and HDFC Bank, cigarette to hotel conglomerate -ITC, housing mortgage provider HDFC and oil & gas behemoth Reliance Industries, are the top Sensex gainers collectively accounting for 143 point surge in Sensex.

Benchmark Nifty surged to a new high of 6,575 on Monday, it was last seen trading at 6,567 levels, up 72 points from its previous close.

The 30-share BSE Sensex surged 251 points to 22,006 levels, it touched its record high level of 22,021 in opening deals.

48 out of the 50 stocks listed on the National Stock Exchange (NSE) Nifty are currently in green while 28 out of 30 BSE Sensex gained at this hour. 

Broader markets underperformed the benchmark indices as investors contiuned to put money on blue-chips. 

BSE mid-cap and small-cap indices are trading 0.4% higher lower than Sensex's 1% upmove. 

Bank Nifty and CNX PSU Bank are the top gaining Nifty sectoral indices at this hour.

BSE FMCG index is trading at 5-month high levels, all sectoral indices are currently trading with gains.

In an otherwise, data light week, markets may witness bouts of volatility with focus on F&O expiry on Thursday, say experts.

In Asia, Asian shares gave up earlier gains on Monday after the China HSBC flash manufacturing purchasing managers index (PMI) fell to an eight-month low in March.

Asian stocks surged on Monday, with the regional indices paring last week’s losses, as Japanese markets surged after an extended weekend and as investors were unfazed by a drop in Chinese manufacturing.

The preliminary reading of 48.1 fell from February's final reading of 48.5, while the "flash" March index also showed new orders slid for a fourth consecutive month to 46.9 -- its lowest point since July 2013, while output fell to 47.3, the lowest since September 2012.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% after the China data's release after gaining as much as 0.5%.

Japan's Nikkei share average bucked the trend and gained 1.3%.

Among top stocks in headline today:

Cairn India & ONGC are up 0.7% to 1.3% higher after Approved partner Cairn India’s move to raise the cost of developing the Bhagyam field in Rajasthan block by 30 per cent to $608 million, say sources.

Reliance Industries stock is up 1.7% as customers of gas supplied by Reliance Industries (RIL) from its D6 block in the Krishna-Godavari basin (KG-D6) are likely to henceforth be asked to sign a gas sales purchase agreement (GSPA) on an annual basis, compared to the current GSPA, signed in 2009 for five years.

Federal Bank is up 2.6% in morning deals after getting the government's approval for increasing foreign investments in its paid up equity share capital from 49% to 74%

Punjab National Bank is almost 2% higher after the state-owned bank said it may raise capital through rights issue to enhance its capital base.