Sensex Settles Near 74,000 Levels Amid Buying In Auto, Metal

The Indian stock market exhibited its greenish mood in the Friday trading session after the positive global cues mitigated volatility. The benchmark indices, Nifty and Sensex concluded with their two-days winning streak, while Auto and Metal displayed robust buying. 

The National Stock Exchange (NSE) Nifty 50 index ended 0.28 per cent higher at 22,466, whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 253 points or 0.34 per cent up at 73,917 levels on the closing bell. 

Nifty Moves

Interestingly, in the Nifty 50 index 25 stocks ended in the green territory while 25 stocks concluded with loss in the session. 

Mahindra & Mahindra topped among peers with 6.02 per cent gain after the automaker’s consolidated net profit jumped to Rs 27.54 billion in the fourth quarter from Rs 26.37 billion in the same quarter a year ago. Moreover, brokerage firm Jefferies adjusted the target price to Rs 2,910 from 1,615 and upgraded the stock to ‘buy’ from ‘hold’ rating.

Among other peers, JSW Steel and Grasim Industries gained more than 2 per cent followed by 1.87 per cent and 1,54 per cent gain in Ultra Tech Cement and BPCL respectively. 

Conversely, in the laggard segment, TCS dipped the most with 1.71 per cent loss, while Cipla lost 1.55 per cent. SBI Life, HCL Technology, Bajaj Auto and HCL Technology lost more than 1 per cent.

Analysts Note

“Key benchmark indices extended gains despite adverse market sentiment in US and Europe, as investors focussed on domestic fundamentals and bought metal, oil and gas, auto and realty shares. While intra-day volatility remained the order of the day, gains have been limited over the past few sessions due to investors' cautious approach in the election season,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

While volatility could increase over the next couple of weeks, selective buying in key frontline, mid and small-cap stocks will persist. The sharp fall in rupee against the dollar is a good development given the FPI outflows in the month so far, as any fresh decline in the local currency could reverse the FPI fund flows, added Tapse. 

Sectoral Movement
In terms of sectoral performance, Auto rallied almost 2 per cent followed by 1.62 per cent gain in Metal. Nifty Realty also gained 1.67 per cent, whereas IT displayed its muted mood. Bank, Finance and FMCG traded with slight gains, while Pharma remained weak. 

The more domestically focussed indices, mid-cap jumped 0.88 per cent, while small cap index rallied 1.65 per cent.

Stocks Specific 
Endurance Tech gained almost 7 per cent to Rs 2,168 after the firm fourth quarter consolidated net profit jumped 54 per cent, while revenue from operations jumped more than 20 per cent.

Crompton Greaves gained more than 15 per cent to Rs 390 after the household appliance manufacturer's profit rose to Rs 1.38 billion in fourth quarter from Rs 1.31 billion a year ago beating estimates.

Eclerx Services slumped more than 5 per cent to Rs 2,278 after the firm reported a 2 per cent drop in its consolidated net profit in the fourth quarter.