Mumbai, Nov 24: Pointing to a likely end to the correction cycle seen in the recent past, benchmark indices ended the week on a positive note, driven largely by support from Infosys, Reliance and heavyweights such as ITC and HDFC.
Midcaps too had a very good day of trade after the index hit a fresh record high mark. Stocks such a Sintex, PC Jewellers, Crompton Consumer, Swaraj Engines, among others, were in focus.
The Sensex closed higher by 91.16 points at 33679.24, while the Nifty was up 40.90 points at 10389.70. The market breadth was positive as 1506 shares advanced against a decline of 1227 shares, while 154 shares were unchanged.
Infosys, Bajaj Auto, GAIL and Aurobindo Pharma were the top gainers, while BHEL, SBI, Hindalco and Vedanta were the top losers.
On a weekly basis, the indices ended 1 percent higher. Nifty Bank and Midcap gained by 0.2 and 1.2 percent, respectively.
“DIIs continue to pump in money; the global cues are positive as well. The volatility levels remain at historic lows, but the inherent liquidity might drive markets higher in the interim. We hold a neutral outlook at this juncture and would not recommend entering new positions at this juncture,” Nikhil Kamath, Co-Founder and Head of Trading, Zerodha said in a statement.
Among commodities, gold prices softened by Rs 25 to Rs 30,525 per ten gram at the bullion market today, tracking a weak trend overseas amid tepid demand from jewellers at the domestic spot market.
Silver, however, remained steady at Rs 40,500 per kg in scattered deals from industrial units and coin makers.
Traders said apart from a weak trend overseas, fall in demand from jewellers and retailers at existing levels weighed on gold prices.
On the stock-specific front, Infosys continued its rally from Thursday, and ended about 1.5 percent lower.
Reliance clocked fresh 52-week high after it completed sale of its interest in one of the three shale gas assets in the US to BKV Chelsea for USD 126 million. Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA and RIL, closed the sale of its stake in the Marcellus shale gas asset operated by Carrizo Oil and Gas, the company said in a statement.
Shares of Swaraj Engines closed 5 percent higher on the back of buyback proposal. A meeting of the board of directors of the company will be held on November 28, 2017 to consider the proposal to buyback the fully paid-up equity shares of the company.
Bata India closed 1 percent lower as investors turned cautious after Motilal Oswal downgraded the stock. The broking firm downgraded the stock to sell, with a target of Rs 578, a downside of 23 percent.
Bajaj Auto was higher by 1 percent. Brokerage house Motilal Oswal is upbeat about the stock and placed a target of Rs 4,197.
Analysts believe the upcoming F&O expiry, along with Gujarat polls could be on investors’ radar.
“The underlying sentiments continue to remain positive. However, with indices trading near record highs and series of key events like GDP data, RBI monetary policy and state elections in Gujarat, lined up over the next 1-2 weeks, investors and traders should be cautious. While the start to the next week could be on a strong footing, indices could witness resistance at higher levels. Traders should keep their leveraged positions hedged, while investors should focus only on quality stocks,” Jayant Manglik, President Retail Sales, Religare Securities said in a statement.