Nifty settles at record high, Sensex adds 246 points; IB Housing, GMDC jump up to 12%

Domestic benchmark indices higher on Wednesday as the buying in the second half of the session pushed the markets higher. BSE's Sensex was able to extend the rally for the eighth straight session, while Nifty50 managed to settle above 20,000-mark for the first time. However, traders will be awaiting US inflation data, due later today.
 
For the day, BSE's barometer Sensex gained 245.86 points, or 0.37 per cent, to settle at 67,466.99, while NSE's Nifty50 gained 76.80 points, or 0.38 per cent, to end at 20,070. In the broader, broader markets space, BSE midcap index inched marginally, and BSE smallcap index surged about 3 per cent. Fear gauge India VIX spiked more than a per cent to 11.83-level.

Despite early volatility, markets quickly rebounded to stay in positive territory thereafter as Nifty closed above the 20,000-mark amid buying in metals, oil & gas and telecom stocks, even as other Asian and European counterparts continued to linger in negative territories. Buying has continued despite persistent selling by foreign investors and valuations getting stretched in the ongoing market rally, said Shrikant Chouhan, Head of Research (Retail) at Kotak Securities.

"Technically, after a promising rally, the Nifty then witnessed a range bound activity near the 20,000-mark. On daily charts, it has formed an inside body candle which indicates indecisiveness between the bulls and bears. For traders now, 19,950-19,000 would act as key support zones while 20,100-20,150 could act as key resistance levels for the bulls," he added.

On a sectoral front, the Nifty PSU Bank index surged more than 4 per cent, while the Nifty media index gained about 2 per cent. The Nifty pharma, oil & gas, realty and private bank indices added about a per cent each. Among the laggards, only Nifty IT and auto indices settled in red.

Due to the oversold conditions, mid and smallcap sectors started to reverse from the lower levels Except for the Auto and IT, rest all the sectors ended the day in green. A mixed trend was witnessed in the broader markets, where the smallcap index outperformed, said Aditya Gaggar, Director at Progressive Shares.

In the Nifty50 pack, Coal India and Grasim Industries surged more 3 per cent each, while Tata Consumer Products and Bharti Airtel posted similar gains. Titan Company, Bharat Petroleum, ONGC, IndusInd Bank and Axis Bank jumped more than 2 per cent each for the day.

On the downside, HDFC Life and Mahindra & Mahindra bled the most, followed by Adani Ports, Larsen & Toubro and Cipla, with each one falling more than a per cent each. Divis Laboratories, Hero Motocorp, JSW Steel, HCL Technologies, Eicher Motors and Nestle India were also among the key laggards.

"The domestic indices resumed its upward trajectory despite weak global cues. The cooling of domestic CPI inflation to 6.83 per cent in August and the rise in industrial production data reaffirmed the robustness of the Indian economy, said Vinod Nair, Head of Research at Geojit Financial Services.

"The contraction in the UK economy and rise in oil prices have created a level of uncertainty in the global market. Also, investors await US inflation data today, which holds global significance as it will provide insights into the Fed's policy outlook," he said.

A total of 3,784 shares were traded on BSE on Wednesday, of which 2,177 settled with gains. 1,480 stocks ended the session with cuts while 127 shares remained unchanged. A total of seven shares hit their upper circuit, whereas the same number of shares tested the lower circuit levels for the day.

In the broader markets, Coffee Day Enterprises and ITI surged 20 per cent each, while IOL Chemicals and Pharma gained 19 per cent. PDS settled 14 per cent up, while Jaiprakash Power Ventures and Indiabulls Housing Finance soared 12 per cent each. GMDC ended 11 per cent up.

Among the losers, Max Health Institute plunged more than 6 per cent, while Kaynes Technology India plunged more than 5 per cent. RattanIndia Power, Dodla Dairy, IRFC, Jupiter Wagons, Electronics Mart India and Data Patterns were down 5 per cent each at the close of the trade.


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