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The markets on Monday closed on a record high with Nifty closing for the first time above the 8,400 level due to the narrower trade deficit in October as compared to the previous month and an increased hope a rate cut by the Reserve Bank of India.
The Nifty closed at 8430.75, 40.85 points or 0.49% up from the previous day's closing. The BSE S&P Sensex also closed at a record high of 28,177.88.
The markets started on flat note but after the declaration of trade deficit data at $13.35 billion which was much lower than expected the market started to gain ending another all time high.
As per the government's trade deficit data the country's oil import bill stood at $12.36 billion, down by 19.2% due to the low crude oil prices. Amongst the sectoral bets S&P BSE power was the biggest gainer with it gaining 1.54% high from the previous day closing.
The S&P BSE auto with an overall gain of 1.43 cent was the second highest gainer on the hopes on better demand. "Due to the expectation of rate cut sectors related to the infrastructure like power are expected to gain. Valuations too are attractive for power companies," said Deven Choksey, Managing Director, KR Choksey.
The Top Nifty gainers were SBI, Bank of Baroda and Tata Motors, while JSPL, DLF and UltraTech Cement were the top losers for the day.
SBI was the top Sensex gainer up 5.4% after the bank posted 30.5% rise in net profit at Rs 3,100 crore for the second quarter ended September 2014, due to robust growth in income from interest, fees and control over costs.Tata Motors was up 4%.
The company posted lower-than-expected earnings for the second quarter due to weak domestic sales. However, the revenues from its subsidiary Jaguar-Land Rover were in line with market estimates contributing to the gain.
Hero MotoCorp was another notable gainer from this space with gains of 2.1%The foreign investors were net buyers with net buy of Rs 656.37 crore on the other hand the domestic investors were net sellers with net sale to the tune of Rs 247.86 crore.
"All in all if you see we started the day with a low due to recessionary signals at Japan however we gained considerably due to trade deficit data," P Phani Sekhar, fund manager, Angel Broking.
