Market touches new high, close to 15K

The 15k mark for the Sensex is within striking distance as banking, telecom and FMCG stocks lifted the benchmark index to a new high today.

The Bombay Stock Exchange's 30-share Sensex rose 142.25 points or 0.97 per cent to 14,806.51, while the broader 50-share NSE-50 Index gained by 43.8 points or 1.02 per cent to reach 4,357.55.

The Sensex's new high was powered by positive sentiments that interest rates may have peaked and on expectations of robust Q1 earnings by India Inc.

Bullish sentiment in the US and Asian markets also acted as a boost for domestic investors. Analysts say the markets are on a roll and the magical 15,000-mark could be achieved within days.

An online poll by Business Standard yesterday showed that 81 per cent of respondents think the Sensex will cross the 15,000-mark in July.

A spoiler could be a possible earnings downgrade by the rupee-hit tech majors led by Infosys Technologies, which kicks off India Inc's earnings season with its Q1 results next Wednesday.

"The April-June quarter will mark the first quarter where significant rupee appreciation, higher interest rates and credit moderation will show up in corporate results. Despite those challenges, we still expect overall margins to hold and a solid quarter with Sensex ex-oil profits expected to rise 25 per cent year-on-year," said Ratnesh Kumar, analyst with Citigroup.

Profit growth leaders will be telecom (+100 per cent year-on-year), cement (+38 per cent), media (+32 per cent) and capital goods (+31 per cent).

Key banks and IT services sectors will also do well despite multiple challenges and should deliver the market average of 25 per cent profit growth. Key laggard sectors are likely to be auto, sugar, metals and textiles, he said, in a note to clients.

Bharti Airtel (up 3.49 per cent to Rs 866.60 per cent), State Bank of India(up 3.37 per cent to Rs 1,582.45), Grasim Industries (up 3.21 per cent toRs 2,702.55), Hindustan Lever (up 2.96 per cent to Rs194.65)and Cipla (up 1.67 per cent to rs 213.55) were the top gainers among the Sensex stocks.

"We expect the rupee appreciation to reflect on the earnings figures only from the next quarter (July-September) and not in Q1," said a senior executive of JM Financial.

Market breadth, a key indicator of the strength of the market, was also positive. Out of 2,715 stocks on BSE, 53.04 per cent or 1,440 stocks ended in the green while 44.20 per cent (1,200) stocks ended in negative territory.