Nifty scales new highs; Sensex rises 493 pts; ITC & Axis Bank rise 3%, Auto stocks disappoint

Domestic equity markets settled continued to rise higher on Friday amid the positive global cues. NSE's Nifty50 scaled new highs amid the bullish momentum. Barring autos, all sectors participated in the rally triggered by FII buying, Flair Industries, the latest debutant of Dalal Street was listed a premium of 65 per cent, before hitting the lower circuit. For the day, BSE's Sensex jumped 492.75 points, or 0.74 per cent, to end at 67,481.19. NSE's Nifty50, which made new highs at 20,291.55, rose about 135 points, or 0.67 per cent, to end the day at 20,267.90. Broader markets were in-line to the headline indices as BSE midcap index added a per cent, while smallcap index was up half a per cent. Fear gauge shed 2 per cent to 12.38-mark. Markets edged higher for yet another session and gained over half a percent. Most sectors contributed to the move wherein FMCG, realty and metal were among the top gainers. The broader indices too continued their positive trend and settled higher, said Ajit Mishra, SVP - Technical Research at Religare Broking. "The rotational buying across the key sectors is helping the index to inch higher and we are now eyeing 20,500 in Nifty ahead. Apart from the domestic factors, upbeat global cues, especially the performance of the US markets, are further adding to the positivity. We thus recommend continuing with a 'buy on dips' approach with a focus on stock selection" he said. On a sectoral front, only the Nifty auto index disappointed. On the contrary, The Nifty media index gained about 3 per cent, while the Nifty PSU Bank and FMCG indices were up 2 per cent for the day. The Nifty metal, realty and consumer durable indices added about a per cent each. In the Nifty50 pack, ITC, NPTC and Axis Bank rose 3 per cent each, while Larsen & Toubro, Britannia, Asian Paints and Tata Steet were up 2 per cent each for the day. Among the laggards, Wipro, HDFC Life Insurance Company, Hero MotoCorp, Mahindra & Mahindra and SBI Life Insurance shed a per cent each. Frenzied buying on the back of renewed optimism from the FIIs and positive European market cues lifted benchmark Nifty to a fresh record high. India remains a bright spot in an uncertain global economy, said Prashanth Tapse, Senior VP (Research), Mehta Equities. "The recent data indicators such as strong GDP and manufacturing numbers along with external factors like falling US bond yields are keeping markets in good stead. The good news is that the short-term technical outlook for Nifty continues to be in favor of the bulls, with support seen at 20,089-19,909 and resistance at 20,500-20,751," he said. A total of 3,872 shares were traded on BSE on Friday, of which 2,145 settled with gains. 1,598 stocks ended the session with cuts while 147 shares remained unchanged. During the day, 339 shares hit their upper circuit, whereas 201 shares tested the lower circuit levels for the day. In the broader markets, TV18 Broadcast surged more than 11 per cent, while Power Finance Corporation gained over 9 per cent. Amara Raja Energy & Mobility and Dixon Technologies gained 8 per cent each. Among the losers, Whirlpool of India dropped 10 per cent, while The New India Assurance Company tanked over 9 per cent.

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