 "Nifty ends above 8,400 led by IT & financials; HDFC up 2%")
Benchmark indices ended higher, amid choppiness, supported by strong buying among software and financial shares.
The Sensex ended higher by 191.68 points at 27,837.21 and the Nifty closed at 8,423.25, up 57.60 points.
However, the broader markets under-performed the benchmark indices-the BSE Midcap index ended absolutely flat, whereas the Smallcap index ended marginally positive.
Meanwhile, foreign portfolio investors bought shares worth a net Rs 48.06 crore yesterday, 19 May 2015, snapping a five-day selling streak.
On the currency front, the rupee depreciated to 63.76 against the US dollar at the Interbank Foreign Exchange due to appreciation of the American currency overseas riding on strong economic data.
Further, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said on Tuesday that inflation has come down tremendously in India.
EXPERT VIEW
According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “Sell in May and go away' held true, as our markets witnessed a correction from mid April onwards. The fall that was steep took benchmark indices below their respective 200 Day EMA, Nifty even breached the psychological mark of 8,000 as a brief encounter. The rally that emanated from sub-8,000 had its resistance near 8,341 which appears to be well surpassed at current levels of 8,400+.”
Further she adds, “Support has hence been shifted upwards from 8,000-8,050 zone to 8,341. Today's trade saw a high near 8,440 levels (50 Day EMA) which is the new found resistance zone. A move above 8,449 hence will pave way for 8630 with support near 8341. Next week being derivatives expiry and the next week crucial with the RBI policy on June 02, volatility is likely to continue.”
GLOBAL MARKETS
The euro slid to a two-week low and a rally in European shares stalled on Wednesday after a Greek official said the country may not make an upcoming repayment to the International Monetary Fund.
The euro's fall follows remarks from a European Central Bank board member on Tuesday that the central bank could increase the pace of its bond-buying in May and June, bringing its losses against the dollar this week to more than 3%.
Japan's Nikkei stock index ended up 0.9% at a fresh 15-year peak, helped by a weaker yen and data showing the economy grew at a 2.4% annualised rate in the January-March period. That was its fastest pace in a year, beating the consensus estimate for 1.5% growth.
MSCI's broadest index of Asia-Pacific shares outside Japan, however, was down 0.3%.
SECTORS & STOCKS
BSE IT and BSE Bankex index surged 1-2% each. However, BSE Metal, Capital Goods, FMCG and Auto indices dipped 0.1-1% each.
IT shares gained ground as the rupee depreciated against the US dollar due to appreciation of the American currency overseas riding on strong economic data. TCS and Wipro have gained over 1.5% each.
Infosys surged over 1%. Infosys chief executive officer Vishal Sikka, during a recent investor conference, acknowledged that other than resuming the growth curve for the company, his focus is also to get discipline and operational excellence back.
Tata Power ended higher by 2% to Rs 77 on the NSE after the company reported a better-than-expected consolidated net profit of Rs 159 crore in the fourth quarter ended March 31, 2015 (Q4) mainly due to lower depreciation and lower coal prices.
From the financial space, ICICI Bank, HDFC Bank, SBI and HDFC gained 1-2% each.
SBI and Amazon today signed a Memorandum of Understanding, identifying areas of cooperation to build a digital India which meets the aspirations of the next generation of customers and small businesses.
The "spectre of deflation" is spurring the world's major central banks into a dangerous struggle for stronger domestic growth that imperils financial markets and ignores the needs of developing nations, Reserve Bank of India Governor Raghuram Rajan said on Tuesday.
Reliance Inds gained over 1%. The company has raised $ 200 million on Tuesday through 20-year bonds. The notes have been issued at par and will bear a fixed interest rate of 5 per cent per annum with interest payable semi-annually in arrears.
Bharti Airtel gained almost 1%. Telecom major Airtel is all set to buy out Augere Wireless -- 4G spectrum Holder Company in Madhya Pradesh circle -- for about Rs 150 crore.
Other notable gainers were HUL, Vedanta, GAIl, Sun Pharma and NTPC.
On the other hand, Bajaj Auto ended down over 2% ahead of its results due on Thursday.
Tata Steel and DLF ended lower by 2.5% and 0.7% respectively on caution ahead of their results to be announced later during the day. BHEL, Hindalco, Axis Bank, Tata Motors and ONGC slipped 0.1-1% each.
The Sensex ended higher by 191.68 points at 27,837.21 and the Nifty closed at 8,423.25, up 57.60 points.
However, the broader markets under-performed the benchmark indices-the BSE Midcap index ended absolutely flat, whereas the Smallcap index ended marginally positive.
More From This Section
The market breadth ended slightly positive, with 1,371 shares advancing versus 1,327 shares declining on the BSE.
Meanwhile, foreign portfolio investors bought shares worth a net Rs 48.06 crore yesterday, 19 May 2015, snapping a five-day selling streak.
On the currency front, the rupee depreciated to 63.76 against the US dollar at the Interbank Foreign Exchange due to appreciation of the American currency overseas riding on strong economic data.
Further, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said on Tuesday that inflation has come down tremendously in India.
EXPERT VIEW
According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “Sell in May and go away' held true, as our markets witnessed a correction from mid April onwards. The fall that was steep took benchmark indices below their respective 200 Day EMA, Nifty even breached the psychological mark of 8,000 as a brief encounter. The rally that emanated from sub-8,000 had its resistance near 8,341 which appears to be well surpassed at current levels of 8,400+.”
Further she adds, “Support has hence been shifted upwards from 8,000-8,050 zone to 8,341. Today's trade saw a high near 8,440 levels (50 Day EMA) which is the new found resistance zone. A move above 8,449 hence will pave way for 8630 with support near 8341. Next week being derivatives expiry and the next week crucial with the RBI policy on June 02, volatility is likely to continue.”
GLOBAL MARKETS
The euro slid to a two-week low and a rally in European shares stalled on Wednesday after a Greek official said the country may not make an upcoming repayment to the International Monetary Fund.
The euro's fall follows remarks from a European Central Bank board member on Tuesday that the central bank could increase the pace of its bond-buying in May and June, bringing its losses against the dollar this week to more than 3%.
Japan's Nikkei stock index ended up 0.9% at a fresh 15-year peak, helped by a weaker yen and data showing the economy grew at a 2.4% annualised rate in the January-March period. That was its fastest pace in a year, beating the consensus estimate for 1.5% growth.
MSCI's broadest index of Asia-Pacific shares outside Japan, however, was down 0.3%.
SECTORS & STOCKS
BSE IT and BSE Bankex index surged 1-2% each. However, BSE Metal, Capital Goods, FMCG and Auto indices dipped 0.1-1% each.
IT shares gained ground as the rupee depreciated against the US dollar due to appreciation of the American currency overseas riding on strong economic data. TCS and Wipro have gained over 1.5% each.
Infosys surged over 1%. Infosys chief executive officer Vishal Sikka, during a recent investor conference, acknowledged that other than resuming the growth curve for the company, his focus is also to get discipline and operational excellence back.
Tata Power ended higher by 2% to Rs 77 on the NSE after the company reported a better-than-expected consolidated net profit of Rs 159 crore in the fourth quarter ended March 31, 2015 (Q4) mainly due to lower depreciation and lower coal prices.
From the financial space, ICICI Bank, HDFC Bank, SBI and HDFC gained 1-2% each.
SBI and Amazon today signed a Memorandum of Understanding, identifying areas of cooperation to build a digital India which meets the aspirations of the next generation of customers and small businesses.
The "spectre of deflation" is spurring the world's major central banks into a dangerous struggle for stronger domestic growth that imperils financial markets and ignores the needs of developing nations, Reserve Bank of India Governor Raghuram Rajan said on Tuesday.
Reliance Inds gained over 1%. The company has raised $ 200 million on Tuesday through 20-year bonds. The notes have been issued at par and will bear a fixed interest rate of 5 per cent per annum with interest payable semi-annually in arrears.
Bharti Airtel gained almost 1%. Telecom major Airtel is all set to buy out Augere Wireless -- 4G spectrum Holder Company in Madhya Pradesh circle -- for about Rs 150 crore.
Other notable gainers were HUL, Vedanta, GAIl, Sun Pharma and NTPC.
On the other hand, Bajaj Auto ended down over 2% ahead of its results due on Thursday.
Tata Steel and DLF ended lower by 2.5% and 0.7% respectively on caution ahead of their results to be announced later during the day. BHEL, Hindalco, Axis Bank, Tata Motors and ONGC slipped 0.1-1% each.