Rally in auto stocks boosts market; Sensex, Nifty end at record closing highs

Rally in auto stocks boosts market; Sensex, Nifty end at record closing highs

 

Mumbai, Dec 19: A huge rally in auto stocks on Tuesday boosted the market with the Sensex gaining over 200 points, while the Nifty was a few points away from its all-time high figure of 10,490. Both indices ended at record closing highs.
The Nifty auto index was up over 3.5 percent and was the top gainer among all sectoral indices, followed by metals, infra and FMCG so far. The IT index was only laggard.
Market experts believe that the rally in auto was largely a play on the rural theme, which has gained prominence on the back of expectations of a rural-focussed gain.
In the broader markets, midcaps gained over 1.5 percent, led by gains in stocks such as Jain Irrigation, and fertilizer names, among others.
The S&P BSE Smallcap index hit a new high of 18,441.54 on the BSE in intra-day on Tuesday, after strong rally in consumer electronics, infrastructure, auto ancillary, iron & steel products, textiles and sugar sector stocks.
The index surpassed its previous high of 18,411.37 touched on December 1, 2017 in intra-day trade.
Godwari Power & Ispat, Indo Rama Synthetics (India), BPL, Bharat Wire Ropes, Ucal Fuel Systems, MIRC Electronics, Atlanta, Waterbase, Precision Wires India and Gufic Biosciences were up more than 5% on the BSE.
Thus far in the calendar year 2017 (CY17), the smallcap index has rallied 53% against 43% surge in midcap index and 27% rise in Sensex.
Around 183 stocks from the smallcap index have seen its market value more than doubled in CY17. While another 157 stocks have outperformed the index by gaining between 54% and 99% during the period.
Among the individual stocks, BPL soared 14% to Rs 116 today extending its 36% surge in past eight trading sessions post September quarter results (Q2FY18). The consumer electronics company reported net profit of Rs 16 crore in Q2FY18, which include one-time profit of Rs 14 crore on disposal of non-core assets of the company. It had profit of Rs 1 crore in Q2FY17.
In commodities, gold prices surged by Rs 175 to Rs 29,700 per 10 grams at the bullion market today, driven by a firm trend overseas amid fresh buying by local jewellers.
Silver also went up by Rs 150 to Rs 38,250 per kg due to increased offtake by industrial units and coin makers.
Traders said, better trend overseas amid a steady dollar with investors monitoring the progress of the US tax reform bill along with pick-up in buying by local jewellers, mainly pushed up gold prices.
Among stocks, Dr Reddy’s Laboratories gained 0.33 in on the back of settlement with the US government.
Telecom operator Bharti Airtel said that it signed an agreement with Millicom International Cellular S.A. to acquire 100 percent stake in its Rwanda operations which operates under the brand name of Tigo Rwanda. The stock was up 2.5 percent.
JM Financial was up around 3 percent on the back of reports of a fundraising plan by the firm.
Share of PSP Projects rose over 1 percent as broking firm Spark Capital has initiated buy rating on the stock with a target price of Rs 640.