Nifty hits 3-month high on back of overseas inflows

Markets continued their northward journey in afternoon session this Tuesday with 50-share Nifty hitting its three month high on surging overseas inflows.

Foreign institutional investors were net buyers of 8.97 billion rupees of stocks on Monday, taking the 2013 net buying to a total of $12.17 billion, provisional exchange data showed.

At 12:55PM, the Bombay Stock Exchange's 30-share index Sensex rose 180 points at 19,852.64 while the National Stock Exchange's 50-share Nifty gained 59 points at 6,030.  

Global risk appetite was firm after a report showed that the US employment rose at better-than-expected pace in April.

US employers added 165,000 workers last month and many more in February and March than previously estimated. The unemployment rate fell to 7.5 percent, which was the lowest level in four years.

Asian markets traded higher with Hong Kong’s Hang Seng rising 0.3% to 22,994.83, China’s Shanghai Composite rose 0.1% to 2,235, Singapore’s Straits Times rose 0.3% to 3,395 while Japan’s Nikkei surged 3% to 14,180 today.


Meanwhile, European markets gained in opening deals. France’s CAC added 0.1% to 3,910, UK’s FTSE rose 0.1% to 6,527 while Germany’s DAX was up 0.1% to 8,125.

Back home, the key sectoral indices such as FMCG, banks, healthcare, real-estate, capital goods gained while consumer durable sector declined on the BSE.

The gainers on the Sensex included, Tata Motors and Hero MotoCorp gaining 2.2% and 2.6% respectively, Jindal Steel added 2.3%, ICICI Bank and SBI were up over 1% each while ITC gained 2%  on the BSE.

The laggards included counters such as Coal India declined 1.6%, Mahindra and Mahindra fell 1.2%, Wipro dropped 1% on the BSE.

The key notable movers included, Finolex Industries which is trading higher by 4% to Rs 124, extending its previous day’s 20% rally, on back of heavy volumes.

Denso India is locked in upper circuit of 5% for ten straight trading day at Rs 70.75 on BSE after the board of auto parts and equipment maker approved the delisting of equity shares of the company from the stock exchanges.

M&M Financial Services has rallied 8% to Rs 251, also its record high on BSE, after the company said it seeks shareholders approval via postal ballot to increase in the borrowing limit for expansions and to meet increased financial needs of the company.

The broader markets gained with mid-caps and small-caps rising nearly 0.5% on the BSE.

The market breadth was positive. Out of 2,219 stocks traded, 1,176 stocks advanced compared to 923 declines on the BSE.