Equity benchmarks closed off day’s high for the second consecutive session Wednesday as investors eyed corporate earnings. Globally investors awaited Friday’s inauguration of Donald Trump as US president. The Nifty reclaimed 8450 intra day after the tax department kept in abeyance its recent circular on indirect transfer of shares by foreign investors.
NSE Nifty rose 19 points at 8417 while broader markets outperformed, while BSE Sensex rose 21.98 points to 27257.64.
Experts expect the market to move gradually higher amid consolidation ahead of Union Budget, the next big trigger, on consistent support from domestic inflows.
Foreign outflows, though a cause for concern, are more technical than fundamental, Vikas Khemani of Edelweiss Securities says.
Since India was on top of most emerging market portfolios so far, it was natural to take the first hit in case of any global uncertainties, he noted, adding, a favourable Budget can reverse the trend.
After this government’s divestment decision, ICICI Prudential Life Insurance shares gained 2.5 percent. The subsidiary of ICICI Bank acquired 8.41 percent stake in financial technology service provider Fino Paytech for Rs 100 crore.
Metals stocks hogged limelight with the Nifty Metal rising over 2 percent. Tata Steel, NALCO, Jindal Steel, Hindalco and Vedanta surged 3-5 percent.
ONGC gained 1.5 percent. The state-run oil & gas exploration company is planning to sell 49 percent stake in Pawan Hans.
Shares of HUL and BHEL were biggest gainers, up 3 percent each followed by HDFC Bank, TCS, HDFC and SBI while Reliance Industries, Infosys, Adani Ports, NTPC, Hero Motocorp and Bajaj Auto were down 0.5-1.6 percent.
Among midcaps, Panacea Biotec shares spiked 18 percent on approval from USFDA for Rizatriptan Benzoate tablets that are used to treat symptoms due to migraine. The company also signed long-term agreement with UNICEF for supply of Pentavalent vaccine.
Cadila Healthcare gained nearly 2 percent after Zydus received approval from US FDA for Methotrexate tablets that are used to to treat psoriasis. According to a media report, the healthcare company is set to buy US firm Sentynl Therapeutics for USD 171 million.
PVR was up 5.6 percent after PE investor Warburg Pincus bought 14 percent stake in company for Rs 820 crore.
European bourses were moderately higher after UK Prime Minister Theresa May provided further clarity on her aims for the upcoming Brexit talks and investors received a number of corporate reports. Asia finished mixed.
The rupee was trading at 68.09 per US dollar.
The market breadth was positive as about 1494 shares advanced against 1241 declining shares on the BSE.
Top 5 Nifty Gainers: BHEL (3.75%), Tata Steel (2.93%), Hind. Unilever (2.55%), ONGC (1.54%), and M&M (1.02%).
Top 5 Nifty Losers: GAIL (-1.85%), NTPC (-1.79%), Hero Motocorp (-1.58%), Cipla (-1.11%) and Adani Ports & Sez (-1.04%)
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