 "Despite Friday falls, markets sustain longest rally since Feb 2012")
Benchmark indices Sensex and Nifty may have ended flat on Friday but the close of day also marked their sixth straight week of gains, led largely by IT majors and Tata Group equities that rallied on upgrades from rating agency Moody's.
The last time Indian markets clocked such sustained gains was between January 2 and February 9 in 2012, when both indices kept up a seven-week rally.
The last time Indian markets clocked such sustained gains was between January 2 and February 9 in 2012, when both indices kept up a seven-week rally.
Today, the 30-share Sensex lost 22 points to close at 27,090, while the 50-share Nifty gained 7 points to end at 8,121.
In the broader market, the BSE mid-cap index ended flat with a positive bias while small-cap index ended 0.6% higher.
Market breadth ended negative with 1,600 losers and 1,449 gainers on the BSE.
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Overseas investors continued to repose faith in Indian equities, buying index futures worth $106.22 million on Thursday, NSE data showed. Foreign banks bought debt worth Rs 18.93 billion ($311.7 million), according to CCIL data.
Rupee:
The rupee is trading at 60.7500/7550, up from Thursday's close of 60.83/84, driven primarily by hopes of continued foreign fund buying in shares and bonds after the US Fed yesterday said it would keep interest rates at zero for the foreseeable future.
Across The Globe:
The British pound rose sharply after a Scottish referendum on independence voted to stay with the United Kingdom, while Wall Street's overnight gains and Alibaba Group's scorcher of an initial public offering underpinned Asian shares.
Japanese stocks soared to a seven-year high on Friday after the yen dropped sharply following the Scottish vote that prevented a break-up of the United Kingdom.
Afternoon comments by Prime Minister Shinzo Abe to carry out pension reform as soon as possible bolstered an already upbeat sentiment.
The Nikkei share average ended 1.6% higher at 16,321.08, the highest closing level since 2007 and just before the collapse of Lehman Brothers in September 2008. It was the biggest daily percentage gain in a month, and was up 2.3% for the week. During the session, the index easily topped a December 30, 2013, high of 16,320.22.
Sectors & Stocks:
On the sectoral front, the BSE IT index was the top gainer, rising 1.5% followed by Teck and Healthcare indices which traded between 0.4-1%. However, FMCG, Oil & Gas, Realty, Metal, Power, Auto and Capital Goods indices lost their sheen, falling between 0.5% and 2%. Both Bankex and Healthcare index ended flat with a negative bias.
Shares of Tata Group companies, with the exception of Tata Motors, ended up to 3% higher on the BSE after global rating agency Moody's upgraded the debt ratings for many group firms including Tata Motors, Tata Steel and Tata Consultancy Services (TCS).
In the technology pack, IT major Infosys ended Friday with marginal losses, ignoring news that the company widened collaboration with Microsoft and Hitachi Data Systems, a move that is in line with chief executive Vishal Sikka's vision to strengthen software offerings and expand global alliances.
However, India's third largest IT firm Wipro ended nearly 1% higher, continuing its rally of the past few trading sessions after securing a contract from Saudi-based Saudi Electricity Company (SEC) for implementing and rolling out plant maintenance and project system functionality of SAP ERP application.
In the healthcare space, drug maker Sun Pharma extended its rally and inched up marginally in today’s trade up nearly 0.5% after the company entered into a licensing agreement with Merck & Co Inc for investigational therapeutic antibody candidate, Tildrakizumab to be used for treatment of plaque psoriasis, a skin ailment.
Cipla, too, ended 1% higher after it signed an agreement with American company Salix Pharmaceuticals, under which Cipla has granted Salix exclusive rights over certain patent applications in the 'Rifaximin Complexes' patents owned by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa. Following the tandem, Dr Reddy’s Lab ended nearly 1% higher.
Metal shares which surged recently after China's economic stimulus raised hopes of a boost in demand in the world's largest consumer of metals continued to trade higher in Friday's trade. Coal India, Hindalco and Tata Steel were up between 0.5-1%. However, Sesa Sterlite ended the session in the red, albeit marginally.
Cigarette maker and Index heavyweight ITC gained nearly 1% on fresh buying.
In the financial segment, Axis Bank, ICICI Bank and the HDFC twins climbed between 0.5-1.5% on renewed buying.
Bharti Airtel ended its session marginally in the positive territory. The company is obliged to spend Rs 436 crore for merging Airtel Broadband Services with itself towards differential spectrum cost and migration fee.
In the Capital Goods segment, engineering conglomerate L&T lost over 2% in today’s trade. BHEL was down 1% despite winning an order worth over Rs 3,500 crore for setting up a thermal power project in Gujarat.
In the Oil and Gas space, Oil majors RIL and ONGC slumped 1% and 2% each.
The Auto pack ended lower today with M&M, Tata Motors and Hero Motocorp down between 1-1.5% on account of profit taking.
GAIL, HUL and SBI were some of the notable names that ended in the red at the end of Friday's trading.
Suzlon Energy lost 10% to close at Rs 20.40 on the BSE with no buyers on the counter. Fresh shares of the company that were allotted on conversion of foreign currency convertible bonds (FCCBs) started trading today.
Archies ended nearly 7% higher to Rs 33, after hitting a 52-week high of Rs 35.30, following acquisition of the company's shares by a private firm through a bulk deal on the National Stock Exchange.
Aegis Logistics surged 9% to Rs 401 on NSE, ahead of board meeting today, 19 September 2014, to consider and approve sale of a minority stake in one of company’s subsidiary.