Sensex, Nifty extend gains for 6th day; Bombay Burmah Trading, Landmark, PFC jump up to 15%

Domestic equity markets extended their gains for the straight sixth session on Friday. Buying in select pockets pushed the benchmark indices higher amid the rising global volatility. However, rising tensions between US and China led to some profit booking in the fag-end of the session, trimming some gains.

For the day, the 30-share pack BSE Sensex jumped 333.35 points, or 0.50 per cent, to settle at 66,598.91, while NSE's Nifty50 gained 92.90 points, or 0.47 per cent, to close at 19,819.95. Broader markets were in line-line as the BSE midcap index rose about a per cent, while BSE smallcap index was up half-a-per cent. Fear gauge India VIX eased about a per cent to 10.78-level.

Benchmark indices once again defied the weak global markets trend to post solid gains for the sixth straight session, as lack of opportunity in key economies is prompting investors to increase their bets on India. Investors are increasing exposure to stocks of companies that are likely to play a major role in boosting the economy, said Amol Athawale, Vice President - Technical Research, Kotak Securities.

"Technically, after a promising reversal formation the Nifty has been holding a higher bottom formation and is comfortably trading above 50- and 20-day SMA which is largely positive. It has also formed a long bullish candle on weekly charts, which supports further uptrend from the current levels. For the trend following traders, 19,700-19,650 would be the key support levels and above the same it could rally till 19,900. Further upside may lift the market till 20,000," he said.

On a sectoral front, the Nifty realty index surged more than 2 per cent. The Nifty consumer durable and oil & gas index gained more than a per cent each. The Nifty auto, financial services and private bank indices also posted decent gains. Among the losers, the Nifty media index dropped about a per cent, while the Nifty FMCG, IT, metal, healthcare and pharma indices also settled in red.

In the Nifty50 pack, NTPC and Coal India topped among the gainers, rising about 3 per cent each, followed by Bharat Petroleum, Tata Motors, Larsen & Toubro, Hero MotoCorp and Adani Ports gained about 2 per cent each. ONGC, Bajaj Finserv and Bharti Airtel added more than a per cent each.

On the contrary, UPL dropped more than a per cent, while Eicher Motors, Apollo Hospital Enterprises, Ultratech Cement, SBI Life Insurance and ITC also posted similar cuts. Tech Mahindra, Tata Consumer Products, Dr Reddy's Laboratories, Wipro and Cipla were among the key laggards for the day.

Global markets stumbled as they processed August's jobless claims data from the US and the rise in gas prices due to strikes in Australia, rekindling further slowdown. The domestic market, however, showcased its resilience once more by rallying, seemingly unfazed by global distress signals, said Vinod Nair, Head of Research at Geojit Financial Services.

"Although selling was seen in IT and pharma stocks due to weak global cues, the gains in infra, industrial, and capital goods stocks due to improved order inflows coupled with the persistent preference for mid- and small-cap stocks contributed to the ongoing rally," he added.

A total of 3,820 shares were traded on BSE on Friday, of which 2,057 settled with gains. 1,639 stocks ended the session with cuts while 124 shares remained unchanged. A total of 378 shares hit their upper circuit, whereas 139 shares tested the lower circuit levels for the day.

Benchmark Indices ended the week today just a few per cent away from record highs ahead of the G20 Summit buoyed by good support from the Bank Nifty as well as the PSU and infra stocks. Despite a deficient monsoon the mood in the market was optimistic as PSU stocks across sectors exhibited positive investor appetite, said S Ranganathan, Head of Research at LKP securities.

In the broader markets, GTL Infrastructure surged about 20 per cent, while Bombay Burmah Trading Company gained about 15 per cent for the day. Nahar Industries surged 13 per cent, Power Finance Corporation and Landmark Cars gained 12 per cent each. ISGEC Heavy Engineering and Sobha ended 11 per cent higher for the day.

On the contrary, Jaiprakash Associates, Dish TV, Andhra Petrochemicals and MMTC tanked more than 5 per cent each for the day, while SpiceJet and Mahanagar Telephone Nigam also posted similar cuts. BF Utilities, Voltamp Transformers and Camline Fine Sciences declined 4 per cent each for the day.

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