Equities gathered momentum in the last hour of trade, lifting the benchmark Sensex to 25,019.51, a rise of 213.68 pts. Oil and gas stocks surged on reports of hike in cooking gas and kerosene prices
Mumbai : Stocks gathered momentum in the last hour of trade on Thursday with the Sensex closing above the 25,000 level and the Nifty index ending at a new high.
Gains in metal, power and oil & gas shares led the rally on hopes of a quick revival in domestic economy, amid strong expectations the European Central Bank will unveil a stimulus shortly.
The BSE Sensex ended at a new closing high of 25,019.51, a rise of 213.68 points or 0.86 %. It breached previous closing peak of 24,858.59 hit on June 3. The NSE 50-share Nifty also flared up by 71.85 points, or 0.97 %, to end at new peak of 7,474.10. “We may see Sensex levels at 30,000 before budget,” said Motilal Oswal, CMD, Motilal Oswal Financial Services.
Buying was strong with 11 of 12 sectoral indices posting gains between 0.17 % and 3.33 %. Metal, oil&gas, power, FMCG, IT and capital goods led the surge.
Persistent capital inflows from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment, said traders.
India’s services sector expanded for the first time in nearly a year during May on rebound in new business orders. Among Nifty constituents, Axis Bank, Bharat Petroleum Corp, Larsen & Toubro, Oil and Natural Gas Corp, and UltraTech Cement hit record highs. The stocks ended up 0.4-7.5%.
Oil and gas stocks surged reacting to reports that the oil ministry may consult the Prime Minister’s Office for raising prices of liquefied petroleum gas and kerosene.
BPCL, Hindustan Petroleum Corp, and Indian Oil Corp surged 4-7%, while ONGC, which bears part of the oil marketing companies’ subsidy burden for sale of subsidised fuels, ended up 2% at Rs 419.15.
Metal stocks continued to witness buying with Steel Authority of India, JSW Steel, Hindalco Industries, Tata Steel, and Sesa Sterlite rising more than 3-6%. Sesa Sterlite gained 6.50%.
“Participants are ready to give higher valuations to beaten down mid-cap stocks, which are perceived to witness relatively higher growth, once the recovery sets in,” said Dipen Shah, Head- PCG Research, Kotak Securities.
Infosys shares may take a sentiment-induced hit as the software major saw yet another exit in the form of vice president Prasad Thrikutam’s resignation.
Angel Broking sees immediate resistance to the Nifty at 7504 points, but said that any sustainable move beyond this level would extend the rally and take the index to a high of 7564 points.
Angel Broking said it is hoping that positive trends in monsoon and developments in the ongoing Parliament session will provide a fillip to equities.
“We expect the current uptrend to extend further. Therefore, the sideways consolidation in stocks like IOC and HPCL provides fresh entry opportunity to ride the next up move,” ICICIdirect said in a note.