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Sensex Rises To 2-week High on Robust Bluechip Earnings

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The benchmark Sensex on Monday (21 July) rose for the fifth day and ended 73 points higher at two-week closing peak on continued foreign capital inflows after bluechips, including RIL and HDFC, reported robust quarterly earnings.

Besides, improving macroeconomic indicators, monsoon progress and positive cues from global markets supported the buoyancy in domestic indices, brokers said.

Shares of Reliance Industries (RIL) rose by 2 per cent after the company posted better-than-expected results on Saturday (19 July). HDFC shares gained 3 per cent after it poster higher consolidated profit. HDFC Bank scrip, however, slipped even as it reported 21 per cent growth in June quarter profit.

The earnings season had started on a good note with tech giants Infosys and TCS exceeding investor expectations, brokers added.

The BSE Sensex resumed higher at 25,776.54 and firmed up further to 25,861.15 on initial buying coupled with higher global cues. However, it lost some momentum due to fag-end selling pressure as Asian markets turned lower amid a weak start in the European markets.

The index ended at 25,715.17, showing a gain of 73.61 points or 0.29 per cent. This is its best closing since July 7 when it crossed 26,100 mark. With today's gain, the Sensex has gained over 700 points in five straight sessions.

"Selective buying in index heavyweights and particularly FMCG sector maintained buying momentum on the bourses," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

The NSE 50-share Nifty today moved up by 20.30 points, or 0.26 per cent, to end at 7,684.20.

Foreign Portfolio Investors bought shares worth a net Rs 574.47 crore on last Friday (18 July) as per provisional data.

Asian stocks ended lower as indices in China, Hong Kong and South Korea declined by 0.05-0.29 per cent while indices in Singapore and Taiwan moved up by 0.11-0.43 per cent.

European markets were trading lower as investors weighed earnings reports and international tensions after reports of the downing of a passenger jet in Ukraine last week and Israel's offensive in Gaza. Key indices in France, Germany and the UK moved down by 0.31 per cent to 0.70 per cent.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Indian equities opened positively and added over half per cent during the day as bluechips traded higher with the help of FIIs. Now, traders are eagerly waiting for the RBI's credit policy review scheduled next month."

Thirteen scrips out of the 30-share Sensex pack ended higher while 17 scrips declined. In the 50-share Nifty, 24 stocks rose, one counter was flat while the rest ended down.

Major gainers from the Sensex were HDFC 2.61 per cent, ITC 1.55 per cent and Axis Bank 1.10 per cent while Tata Power fell by 1.94 per cent, Gail 1.86 per cent, SBI 1.62 per cent, BHEL 1.58 per cent, Sterlite 1.39 per cent, Infosys 1.27 per cent, L&T 1.24 per cent and ONGC 1.13 per cent.

"Its normal to witness a pause post a series of up move; however, one should be cautious and keep the leveraged positions hedged. We believe sustainability above 7700 mark in Nifty would be decisive otherwise it?ll consolidate further around the current levels," said Jayant Manglik, President-retail distribution, Religare Securities.

Among the S&P BSE sectoral indices, FMCG rose by 1.05 per cent, Oil&Gas 0.60 per cent while Capital Goods dropped by 0.78 per cent.

The BSE Mid-cap and Small cap indices rose by 0.51 per cent and 0.87 per cent respectively on buying by retail investors.

Market breadth turned positive as 1,721 stocks ended higher, 1,244 stocks finished lower while 104 ruled steady.

The total turnover fell to Rs 2,899.45 crore from Rs 3,015.79 crore on last Friday.