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Nifty eyes 8,300 mark; metal stocks rally

At 12:45pm, the 30-share Sensex was trading nearly 250 points higher at 27,486 levels and the 50-share Nifty has climbed 71 points to trade above 8,270 levels

SI Reporter  |  Mumbai 

continue to trade firm in noon deals, supported by a strong rally in the frontline stocks.

At 12:45pm, the 30-share Sensex was trading nearly 250 points higher at 27,486 levels and the 50-share Nifty has climbed 71 points to trade above 8,270 levels.

In the broader market, both the BSE midcap and smallcap indices moved up 1% each in noon deals. Market breadth (BSE) remains positive with 1,601 advances against 781 declines.

Meanwhile, foreign institutional investors were net buyers in Indian equities to the tune of Rs 40 crore.

On the domestic front, Finance Minister Arun Jaitley said that the economy is expected to grow "much better" in 2015-16 as compared with the current financial year.

Rupee:

Falling for the fourth straight session, the rupee today weakened by another 13 paise to 63.70 against the US dollar in early trade on the Interbank Foreign Exchange market.

Crude Oil:

Oil prices rose on Monday, after dropping for the past two sessions, as escalating clashes in Libya stoked worries about supply from the OPEC member. Brent crude was up 37 cents at $59.82 by 0302 GMT after hitting $60.40 in earlier in the day. The benchmark settled down 79 cents in the previous session.

Key Stocks:

On the sectoral front, all 13 sectoral indices are trading in the positive territory with BSE Metal index up nearly 3% followed by Realty, Auto, power and Oil & Gas indices up between 1-2%.

The promulgation of coal block ordinance has led to strong buying in metal stocks. Sesa Sterlite has gained around 5%. Kotak Securities has upgraded the stock to “BUY” from “REDUCE” at a target price of Rs 250. ON the other hand, Tata Steel and Hindalco have gained close to 2% each

BHEL has gained over 1% amid media reports that the PSU engineering major is eyeing opportunities in Mozambique and Laos.

L&T has gained around 1% after the company said it has bagged an offshore contract valued at Rs 894 crore from the Oil & Natural Gas Corporation (ONGC).

ONGC has gained 2%. Media reports suggest that ONGC and Cairn India, up 0.9% are going to develop and produce gas from the Barmer block in Rajasthan. GAIL too has gained around 1% while RIL has gained around 0.3% after the company said it has planned turnaround at its Nagothane manufacturing site.

Auto stocks are trading firm ahead of the release of monthly sales volume data for the month of December due later in this week. Tata Motors has gained around 2% followed by Bajaj Auto and Hero Motocorp which have gained around 1% each. Maruti Suzuki and M&M have gained around 1% each.

Bharti Airtel has gained 0.8%. The comapny has clarified that the additional charges for VOIP calls for using services like Skype and Viber are not going to be introduced immediately while the company is also going to come up with affordable plans for its postpaid users.

On the flip side, Kotak Mahindra Bank is trading nearly 0.5% lower in an otherwise firm market after the All India ING Vysya Bank Employees Union and All India ING Vysya Bank Officers Association called for a strike on January 7 to demand job safety after the merger of Kotak Mahindra Bank and ING Vysya Bank.

ING will be holding its annual general meeting in Bengaluru on January 7, where they are going to seek shareholders’ approval for the merger.

Among other shares, Aban Offshore has surged nearly 13% to Rs 470 on NSE on back of heavy volumes on after the rating agency Credit Analysis & Research (CARE) upgraded the credit rating of the oil exploration and production company.

RPP Infra Projects is trading higher by 3% at Rs 129 on National Stock Exchange (NSE) after the company said it has bagged new order worth Rs 48.37 crore from Tamilnadu Water Supply and Drainage Board for providing water supply improvement scheme to Tindivanam Municipality.

Global Markets:

Asian stocks rose to the highest level in almost three weeks, buoyed by gains in the US and new bank rules in China that will help spur lending. The euro traded near a two-year low while oil advanced, Bloomberg reported. Hong Kong’s Hang Seng is trading up 2% and China’s Shanghai Composite has gained 1.6%, while Japan’s Nikkei Stock Average is trading lower by 0.4%.

US stocks ended higher on Friday, with both the Dow and S&P 500 closing at records in a broad rally, though trading was light with many market participants still out for the Christmas holiday. S&P500 Index up 0.33%, The Dow Jones Industrial Average was up 0.13% and Nasdaq Composite gained 0.7%.

First Published: Mon, December 29 2014. 11:43 IST
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