Nifty ends above 7,100 led by index heavyweights

Reliance Industries, Tata Motors, Infosys, and Sun Pharma were major contributors to the rally

Indian benchmark stock indices reversed intra-day losses to end higher, amid firm European cues, led by index heavyweights Infosys and Reliance Industries.

The S&P BSE Sensex ended 190 points up at 23,382 and the Nifty50 finished 60 points higher at 7,108.

The broader markets underperformed the benchmarks with BSE Midcap and Smallcap indices ending higher by 0.5% and 0.2% each. Market breadth remained weak with 1,447 declines versus 1,108 advances on the BSE.

"The Nifty opened the day with a mild uptick but was under pressure since the start of the days trading and at one point moved below 7000 once again. Demand coming in the second half of the days trading though made sure that the closing was higher above 7100 and the same also led to a close with a healthy candlestick despite the days volatility," said Siddhartha Khemka, Head – Research, Centrum Wealth

 He further said, "Nifty Bank which has been an extremely volatile sector since the past few weeks, underperformed the Nifty but closed the day with gains as well. The candlestick of the Nifty bank was also healthy and signalling a likely trading up move in the coming few sessions. 13800 is expected to be support of medium term significance for the index as seen on weekly charts."

RUPEE

The Indian rupee depreciated to near record lows against the American dollar, forcing the Reserve Bank of India (RBI) to intervene to stem further falls.

The rupee dropped to as low as 68.67 to the dollar during intraday, not far from a record low of 68.85 hit in August 2013 when India was hit with its worst financial turmoil in the recent times.

CRUDE OIL

International crude oil prices remained volatile in today’s trade.  After climbing higher in the morning trade, oil prices have dropped on the backdrop that Iran may not agree to a deal between Saudi Arabia, Russia and other producers to freeze oil output at January levels, thus keeping the current oversupply intact.

Brent crude was down 31 cents at $31.87 per barrel after settling down $1.21 in the previous session. It had climbed to $32.83 a barrel in early trade on Wednesday.

SECTORS & STOCKS

Sectorally, BSE healthcare rallied nearly 2%, followed by Oil&Gas index, up 1.4% while BSE Consumer Durables index dropped 2.3% in a strong market.

Banking and financial pack traded mixed as profit taking is witnessed in the private sector banks. ICICI Bank, Yes Bank and Axis Bank were down 0.4%-3% each while HDFC twins have gained 0.1% each.

State Bank of India advanced nearly 2%. The stock had corrected in the previous session after the management said non-performing assets are expected to rise in the coming quarter of this financial year and may impact its profitability.  

Tata Motors jumped 3% after the company along with Bharat Forge and General Dynamics have forged an alliance to bid for the $11 billion (Rs 78,000 crore) project of making combat infantry vehicles for the Indian Army under the Future Infantry Combat Vehicle (FICV) Programme.

Dr Reddy’s Laboratories gained 3.5% after its US subsidiary received approval for Sernivo spray, used to treat plaque psoriasis patients 18 years of age or older,  from the US Food and Drug Administration (USFDA) as per media reports.

Cipla eased nearly 1%. The pharma major said the government has approved an investment by Mauritius-based FIL Capital Investments in its subsidiary Cipla Health. Among its peers, Sun pharma gained 2.3% while Lupin dropped 2%.

Infosys has gained 1.3%. The IT major is confident of achieving its ambitious target of hitting $20 billion in sales by 2020 despite the pall of economic gloom hanging over the Indian information technology (IT) industry.

HCL Tech gained marginally after the tech firm is planning to sell shares in the US this year which would be the first listing there by a large Indian company in more than eight years.

Bank of India advanced 0.7% after Standard & Poor's Ratings Services revised its outlook on Bank of India to negative from stable.

BPCL gained 4% after the state-owned oil marketing major received clearance from the Environment Ministry for Rs 337-crore project at its Kochi Refinery in Kerala.

Among other shares, Glenmark Pharmaceuticals has announced receipt of tentative approval from USFDA for its generic version of azelaic acid topical gel used for treating skin inflammation. The stock has gained 2.4%.

Shares of Just Dial zoomed 18% on the BSE on back of heavy volumes after the company announced schedule for the buyback of equity shares.

Shares of United Breweries (Holdings) came under pressure after the company received a letter from Punjab National Bank (PNB) stating that the company is a ‘Wilful Defaulter’ The stock slipped 6%.

Ratings agency CRISIL has downgraded ratings on Allahabad Bank's tier II bonds on prospects of further deterioration in the asset quality and pressure on bottomline. The stock gained 0.5%