Mumbai, Nov 27: Equity benchmarks managed to extend uptrend for the eighth consecutive session Monday, with the Nifty reclaiming 10,400 level intraday led by late rebound in banking & financials. The market opened lower after the S&P reaffirmed India rating and weak Asian cues, but recouped losses in last hour of trade.
The 30-share BSE Sensex rose 45.20 points to 33,724.44 and the 50-share NSE Nifty gained 9.80 points at 10,399.50.
The broader markets outperformed benchmarks with the Nifty Midcap rising half a percent to end at record closing high. The market breadth was positive as about three shares advanced for every two shares declining on the BSE.
Nifty Bank also ended at fresh record closing high of 25,891.95, up 0.44 percent. Axis Bank was up 2.55 percent as The Essar Group will repay debt of various financial institutions including Axis Bank through BPO business (Aegis) sale proceeds.
HDFC Bank, SBI, Kotak Mahindra Bank and Yes Bank gained 0.4-1 percent.
L&T rose half a percent as its construction subsidiary has bagged orders worth Rs 3,572 crore under transportation infrastructure, metallurgical & material handling, power transmission & distribution, and buildings & factories segments.
Oil India was up 1.3 percent and ONGC rallied 1.7 percent. Credit Suisse upgraded Oil India to outperform from neutral and raised target price to Rs 425 while it maintained outperform rating on ONGC with increased target price at Rs 220 (From Rs 190 per share).
“Oil around USD 60 per barrel is a sweet spot for both ONGC and Oil India with strong earnings and low subsidy risk in FY19,” the research house said while raising EPS estimates for ONGC/OIL for FY18/19 by 8/2 percent and 10/9 percent, respectively.
Mindtree jumped 7 percent as Credit Suisse upgraded the stock to outperform and increased target price on earnings growth hope.
Gujarat Heavy Chemicals surged 10 percent as DSP Blackrock Mutual Fund bought 9,50,528 equity shares at Rs 272 per share through a block deal on Friday.
Meanwhile, Global firm Morgan Stanley has time and again reiterated its bullishness on the Indian economy, saying that the country is slated to see tremendous growth in the near future. In an interview, Chetan Ahya, Co-Head of Global Economics & Chief Asia Economist, Morgan Stanley said the house is expecting the second quarter India’s Q2 GDP number growth to be around 6.5%, which will confirm a turn in the growth environment. “The moderation seen in the data points in October could be a temporary downtick, while the underlying fundamentals of the economy are good enough to bring recovery back again,” he told the channel.
Further, he said that all the drivers of growth would be in place by FY-19. “The private capex joining in will bring the strength in India growth numbers that we are forecasting for it to go to 7.5 percent in March FY19,” he pointed out in the same interview.
Last week, Morgan Stanley said that India is uniquely placed among emerging markets and has a very clear reform agenda to address long-standing issues. In an interview to CNBC TV18, Jonathan Garner, chief Asian and emerging markets equity strategist at Morgan Stanley said, “What we are seeing India is probably uniquely amongst emerging markets (EM). It has a very clear reform agenda to address long standing issues particularly around infrastructure spending. We have also seen, I have been waiting for it for 20 years, the implementation of the goods and services tax (GST) this year. We have seen the recapitalisation of the PSU banks.”
A recent Morgan Stanley report says that India is likely to be the world’s fastest-growing large economy in the next 10 years, driven by digitisation, favourable demographics, globalisation and reforms. According to the global financial services major, the trend line in India’s annual GDP growth has been accelerating to 6.9 per cent in 2000s, from 5.8 per cent in the 1990s, and this momentum is likely to continue in the next decade as well.