MARKET COMMENT Jayant Manglik, President, Religare Broking The bulls continued to dominate as the equity benchmark indices registered seventh straight session of healthy gains, largely led by sharp appreciating rupee (vs USD), declining crude oil prices and supportive global cues. The Nifty index traded on a firm note throughout the session and ended with healthy gains of 0.5% at 10,967 levels. The broader market indices ‘BSE-Midcap’ and ‘BSE-Smallcap’ outperformed the benchmark and closed higher by 1.5% and 1%, respectively. Barring IT, which witnessed selling pressure, all the other sectoral indices witnessed healthy buying with Auto, Realty, Power, FMCG and Oil & Gas being the top gainers in range of 1-3%. We expect some consolidation in the Indian markets at higher levels, due to lack of fresh positive domestic triggers and uncertain global cues. Market participants would keep close watch on the outcome of today’s US Fed meet and also GST meet outcome scheduled on Saturday. Further, movement of crude oil prices, currency and global developments would be tracked. We reiterate our view of maintaining stock specific trading approach and focus more on position management.
Among sectoral indices, the Nifty PSU Bank index ended 2.9 per cent higher led by Vijaya Bank and Bank of India after TV reports suggested that Allahabad Bank, Bank of India and Bank of Maharashtra may come out of PCA soon. The Nifty FMCG index, too, rose 1.3 per cent led by Jubilant Foodworks and Dabur India.
In the broader market indices, the S&P BSE Midcap index rose 1.5 per cent to end at 15,519 levels, while S&P BSE Smallcap index settled at 14,765 levels, up 1.1 per cent.
Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the US Federal Reserve might be done with tightening after its policy meeting later in the session.
(with Reuters input)