Sensex rises 103 points, Nifty ends above 8,900 ahead of Feb F&O expiry

BSE Midcap and BSE Smallcap indices shed 0.6% each

The benchmark indices on Wednesday pared some intraday gains but closed higher for the sixth straight session thanks to over 11% surge in index heavyweight Reliance Industries even as broader indices finished lower ahead of the F&O expiry of February series due tomorrow. 

The S&P BSE Sensex settled the day at 28,864, up 103 points, while the broader Nifty50 ended at 8,926, up 19 points. 

The broader market underperformed the frontline indices with BSE Midcap and BSE Smallcap indices shedding 0.6% each.
 

The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade. On the BSE, 1,753 shares fell and 1,088 shares rose. A total of 192 shares were unchanged.

"Indices were able to continue the push higher, with Reliance surging post Jio’s announcements. But sectoral indices dipped into red, while Nifty’s midcap 100 index eased lower from the record peak. Obviously the derivatives expiry as well as Friday’s holiday may have weighed on the investors, prompting them to take some money off the table,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Sectors and stocks

RIL stock hogged the limelight with it spiking as much as 11% to Rs 1212, hitting its 8-year high, after investors welcomed plans by its telecom unit Reliance Jio to start charging customers for services. The stock was the top gainer on Sensex and Nifty and was also the best F&O performer. 

IT index (down 1.7%) was the leading sectoral loser, led  by losses in Trigyn Technologies (down 4% at Rs 107) and Kellton Tech Solutions (down 3.8% to Rs 141). Among the frontline IT losers, TCS and Infosys shed over 2% each. 

Shares of Bharat Electronics lost ground and slipped 3% to Rs 1,512 even as the company's offer for sale got fully subscribed on the first day of stake sale by the government.  

Castrol India fell over 2% to Rs 424 as the company warned of volatility in the first half of 2017, although it reported a 10.7% rise in Dec-quarter profit on Tuesday.

Global markets

European shares climbed to a new 14-month high. The pan-European STOXX 600 index was up 0.5% at 375.19 points, while Germany's DAX was up 0.4%. Among Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, South Korea's Kospi added 0.15%, Singapore advanced 0.7% and Hong Kong's Hang Seng rose 0.9%. Japan's Nikkei bucked the trend and shed 0.1%.