Equity indices surge to fresh highs on global cues, healthy buying (Roundup)

Broadly positive global cues, coupled with healthy buying in banking, capital goods and auto stocks, lifted the key Indian equity indices on Friday to close at fresh highs.

According to market observers, index heavyweights like State Bank of India (SBI), Larsen and Toubro (LT), Tata Motors and ONGC, among others, aided in the upward trajectory of the benchmark indices.

The broader Nifty50 of the National Stock Exchange scaled a fresh intra-day high of 10,461.70 points and the barometer 30-scrip Sensitive Index (Sensex) of the BSE of 33,733.71 points.

On closing basis, the Nifty50 rose by 28.70 points, or 0.28 per cent, to a new high of 10,452.50 points. Its earlier record was 10,440.50 points (November 1).

Surpassing its previous record closing at 33,600.27 points, the BSE Sensex closed at a fresh high of 33,685.56 points -- up 112.34 points, or 0.33 per cent.

The BSE market breadth was bullish -- 1,420 advances and 1,329 declines.

In terms of the broader market, the S&P BSE mid-cap index closed a tad lower by 0.07 per cent, whereas the small-cap index was up 0.49 per cent.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Market extended gain supported by strengthening rupee on account of flow of foreign funds due to improving economic data.

"Better service PMI (Purchasing Manager's Index) data and core industry numbers is providing signs of ease in GST led bottlenecks and lifted the sentiment."

On the currency front, the rupee strengthened by six paise to close at 64.55 against the US dollar from its previous close at 64.61.

However, in terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 9,690.84 crore, whereas domestic institutional investors (DIIs) purchased stocks worth Rs 33.40 crore.

"The recent surge in public sector banks (PSBs) has created a momentum play where they look more attractive to traders. The differences in valuations between private banks and PSBs have reduced," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

Sector-wise, the S&P BSE banking index rose by 289.04 points, followed by capital goods index by 201.47 points and automobile index by 59.04 points.

On the other hand, the S&P BSE healthcare index fell by 81.57 points, oil and gas index by 26.06 points and metal index by 19.69 points.

"Counters like pharma and metals witnessed profit booking after recent outperformance, where investors who missed the opportunity can consider the consolidation as an opportunity," said Nair.

Major Sensex gainers on Friday were: SBI, up 3.19 per cent at Rs 325; Tata Motors, up 2.78 per cent at Rs 446.90; Tata Motors (DVR), up 2.02 per cent at Rs 246.90; LT, up 1.98 per cent at Rs 1,235; and Axis Bank, up 1.87 per cent at Rs 540.

Major Sensex losers were: Power Grid, down 2.05 per cent at Rs 210.60; Sun Pharma, down 1.95 per cent at Rs 552.20; Coal India, down 1.73 per cent at Rs 286.60; Hero MotoCorp, down 1.23 per cent at Rs 3,687; and Lupin, down 1.10 per cent at Rs 1,049.25.

--IANS

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