Sensex ends at record high, up 476 pts; Voda Idea gains 3% on govt relief

Both Sensex and Nifty hit fresh record highs in intra-day deals on Wednesday

Strong buying was visible on Dalal Street after multiple days of sideways movement, pushing the benchmark indices to their record close on Wednesday. The much-awaited US inflation data indicated a slower than expected rise in prices, which is positive for the market because of the likely fall in tapering risk. Further, the auto and telecom stocks hogged limelight as government announced measures for the respective sectors.

Overall, the BSE barometer Sensex ended the day 476 points higher at 58,723. The 30-pack index had touched a new peak of 58,777.06 during the session. Meanwhile, the NSE Nifty settled above 17,500 for the first time at 17,519, up 139 points. It sclaed fresh high of 17,532.70 earlier in trade. Index heavyweights Infosys, Bhart Airtel, TCS and SBI were the top contibutors in today's session.

The broader markets too climbed higher and both BSE Midcap and BSE Smallcap hit their respective new record levels during the session. The midcap pack ended the day 0.65 per cent higher while the smallcap index added 0.86 per cent.

Sectorally, Nifty Media reversed gains on account of profit taking to emerge as the sole sectoral loser, down 1.55 per cent. On the other hand, Nifty PSU Bank and Nifty IT were the top gainers, up nearly 3 per cent and 2 per cent, respectively.

On BSE, the telecom pack, up 4 per cent, lead the sectoral gainers following the relief for the sector by the government. The stocks of Vodafone Idea and Bharti Airtel gained on the back of this development, rising up to 5 per cent.

4:25 PM

TECH VIEW :: Further upside in Nifty towards 17600-17700 levels likely

After showing a range bound movement in the last 5-6 sessions, Nifty picked up upside momentum and witnessed upside breakout of the range on Wednesday and closed higher. A long bull candle was formed on the daily chart, which indicate an upside breakout of the narrow range movement of the last one week. This is positive indication and one may expect further upside in the short term.

The positive chart pattern like higher tops and bottoms is intact and the recent swing low of 17254 could now be considered as a new higher bottom of the sequence. The immediate support of 10 day EMA is intact and has offered support for the Nifty during recent sideways range movement. Nifty on the weekly chart continued with uptrend after a pause of last week. This action signifies an uptrend strength of the market as per larger timeframe chart.

Conclusion: The upside breakout of range movement could be a cheering factor for bulls to make a comeback. One may expect further upside towards 17600-17700 levels in the next few sessions. Immediate support is placed at 17420 levels.

-- Nagaraj Shetti, Technical Research Analyst, HDFC Securities

4:15 PM

MARKET VIEW ON TELECOM & AUTO MEASURES :: Bold Reforms!

The measures announced for the telecom and auto industry are sweeping with potential for far-reaching beneficial impact. A four-year moratorium on dues of the telecom sector which covers AGR, spectrum dues and interest payment will bring big relief to the cash-strapped sector. This is positive for banks, too, since banks' exposure too will decline significantly. 100% FDI in telecom and redefinition of AGR excluding non-core revenue are welcome steps that can stimulate investment in the industry.

The Rs 26058 cr PLI scheme for autos, auto components and drones is a major initiative to attract advanced auto technology and supply chains into India. This is a timely policy when global supply chains are looking for markets outside China for shifting supply chains. The PLI scheme's goal of investment of Rs 42500 cr in 5 years is ambitious but achievable. In brief, bold reforms.

-- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

4:14 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index managed to close a day on fresh highs at 17518 with gains of nearly one percent and formed a bullish candle on the daily chart. it seems the index has given a bullish flag breakout on the daily chart which consider to be a bullish continuation pattern by nature so one can expect more upside if 17400-17300 levels are held which are immediate & good support zone on the downside, on the higher side immediate hurdle is at 15600-15700 zone also any dip near mentioned support zone can be again fresh buying opportunity.

4:13 PM

MARKET QUOTE :: Vinod Nair, Head Of Research at Geojit Financial Services

The Indian market continued to add investor wealth as the broad market traded to record highs. Auto and telecom were the key sectors in anticipation of reforms to be announced by the government in the cabinet meeting. Cabinet cleared Rs.26,000cr PLI scheme for the auto sector in order to boost production of electric vehicles and hydrogen fuel vehicles. Reports of approval of a relief package for the telecom sector including a likely moratorium of AGR payment will provide relief to the debt-laden sector. On the global front, the much-awaited US inflation data indicated a slower than expected rise in prices, which is positive for the global market because of the likely fall in tapering risk.

4:09 PM

Varroc Engineering hits 20% upper circuit on approval to Auto PLI scheme

>> Cabinet today approved Production Linked Incentive scheme for auto industry, auto component industry & drone industry to enhance India's manufacturing capabilities, with a budgetary outlay of Rs 26,058 crore

4:06 PM

Buying interest remains strong in Ami Organics as stock jumps 20%

>> The stock had debuted on the bourses on Tuesday. With today’s rally, it has now gained a solid 84 per cent in just two trading sessions from its issue price of Rs 610 per share.

4:04 PM

ZEEL declines 15% from 52-week high, ends 3% lower

>> The stock witnessed profit taking following a sharp rally

>> The stock had rallied in morning session after ace investor Rakesh Jhunjhunwala's Rare Enterprises Ltd and BofA Securities Europe SA bought shares of the company worth over Rs 225 crore through open market transactions on Tuesday