Sensex up 630 pts, Nifty atop 16,500; ONGC, RIL, Infy, TCS top contributors

CLOSING BELL: ONGC, Tech M, Reliance Industries, TCS, HCL Tech, SBI, and Infosys were the top gainers, up between 2 per cent and 3.7 per cent

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CLOSING BELL

Stock market highlights: Supportive global cues amid consistently falling commodity prices, and the government's decision to cut windfall tax on fuel exports lifted sentiment on the Street on Wednesday. The S&P BSE Sensex opened gap-up with a gain of over 600 points and built on them to hit a high of 55,630. By close, the index stood at 55,397, up 630 points or 1.15 per cent.

The Nifty50, on the other hand, reclaimed the 16,500-mark to end at 16,521, up 180 points or 1.1 per cent.

ONGC, Tech M, Reliance Industries, TCS, HCL Tech, SBI, and Infosys were the top gainers, up between 2 per cent and 3.7 per cent. HDFC Life, M&M, Eicher Motors, and Sun Pharma, on the other hand, weere the losers in a solid market, down up to 2 per cent.

The broader market, however, underperformed the frontline indices today as they added up to 0.42 per cent. Sectorally, the Nifty IT index climbed 3 per cent, followed by the Nifty FMCG (up over 1 per cent). On the negative side, the Nifty Realty index fell 0.29 per cent.

Windfall tax cut

The government's quicker-than-expected cut in windfall tax on fuel exports should "normalize equity multiples" of Reliance Industries and state-owned ONGC (Oil and Natural Gas Corporation), analysts at Morgan Stanley said on Wednesday. Besides, they see ONGC earning profit per barrel worth $25, which is 20 per cent higher over last year's profit. READ MORE

Technically, Reliance Industries shares opened gap-up over the 200-day moving average (DMA) set at Rs 2,507-mark. If the stock manages to hold ground above the same, a positive upside can be expected as the stock has held support near the Rs 2,350 level earlier. READ MORE

4:03 PM

Nifty tech view: Buy on dips effective strategy as long as index holds above 16,350

Nifty found resistance at the higher levels as it reached the upper band of the rising channel on the daily chart.

Over the near term, the index may consolidate till it gives a breakout above 16,600.

On the lower end, 16,350-16,400 may remain crucial support.

A buy on dips strategy is likely to work as long as the Nifty holds above 16,350.

Views by Rupak De, Senior Technical Analyst at LKP Securities.

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4:01 PM

Post-closing view: Sustained buying from FIIs to cushion the upward rally

Indian stocks led a steady climb as a result of encouraging signals from both domestic and international markets.

Reduced export duty and windfall taxes improved the mood of oil producers.

Strong quarterly results in the US market boosted the rally, while the European market rose as worries over Europe's energy supply eased.

If sustained buying from FIIs prevails, it will provide a cushion to the upward rally in the domestic market.

Views by Vinod Nair, Head of Research at Geojit Financial Services.

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