Current Nifty rally longest in 5 years

The National Stock Exchange (NSE) CNX Nifty rose for the 10th consecutive session, ending 0.5 per cent higher on Wednesday and logging its longest rally in about five years, driven by the banking, capital goods and oil and gas sectors.

The benchmark index has rallied 4.15 per cent, or 270 points, in 10 trading sessions between March 21 and April 2, according to data compiled by Business Standard Research Bureau.

On Wednesday, the 50-share NSE CNX Nifty closed at 6,753, its highest closing, owing to strong foreign inflows.

The 30-share S&P BSE Sensex also closed at a new high—-22,552. The index had closed with gains on all trading sessions between March 21 and April 2, except March 25, when it had closed with a loss of 0.27 points. Between March 21 and April2, foreign institutional investors have net-invested about Rs 13,000 crore, stock exchanges’ provisional data show.

In 2007, during the 11 trading sessions between September 17 and October 3, the Nifty had gained 15.9 per cent, or 716 points, while the Sensex had gained 15.1 per cent, or 2,343 points.

Winners and laggards
During March 21-April2, of the 50 Nifty stocks, three—-Dr Reddy’s Laboratories, ITC and Sun Pharmaceutical Industries—-have reported drops of three-six per cent. Three public sector banks—-State Bank of India, Bank of Baroda and Punjab National Bank—-have rallied 16-22 per cent in the current Nifty rally.

Analysts attribute the gains to the improving macroeconomic situation—-the fall in inflation and the narrowing of the country’s current account deficit. The Reserve Bank of India (RBI)’s move to delay the implementation of Basel-III capital adequacy norms had also given a boost to these stocks, they added.

In the metals space, Tata Steel, Hindalco and Jindal Steel and Power have gained 11-15 per cent on expectations any move by China to raise infrastructure spending will boost demand for industrial metals.

IDFC surged 15 per cent, as the company is among the frontrunners for a banking licence due to its strong distribution network and credible record.