Market remained in a phase of consolidation as the Sensex edged up 35 points in choppy trade on Thursday ahead of start of earnings season next week and Monsoon session of Parliament amid a higher opening in Europe.
According to the just-released US Fed minutes, policymakers decided to put rate hike plans on hold till they get a grip on likely consequences of the Brexit fallout.
The earnings season is scheduled for next week and the Monsoon session is slated to begin from July 18.
Healthcare, FMCG, power and banking stocks were on the radar as buying paced up.
- Sensex jumps 1,000 points in just five sessions, hits 36,000 mark
- Sensex crosses 35,500-point level, closes at new peak
- Better macros, markets hit new peaks on buying spree
- Sensex, Nifty post 6th weekly gains; rise to all-time highs
- Market at a loss for direction as Sensex ends in red
- D-Str eyes FII inflows,earnings season
Though the market showed plenty of resilience after the UK vote to exit the European Union, investors digest implications of the development and are trying to get a sense of the fuller impact.
HSBC in a report said India’s economy may grow at a slightly slower pace of 7.4 per cent this fiscal amid weaker global demand and risk aversion, which injected a sense of restraint.
The 30-share Sensex gave up most of its early gains before closing at 27,201.49, a moderate gain of 34.62 points, or 0.13 per cent.
On Tuesday, the index had dropped 112 points for the first time in six sessions as investors booked profits in recent gainers.
The NSE Nifty settled the day at 8,337.90, up 1.95 points, or 0.02 per cent.
The market was shut yesterday on account of ‘Eid-Ul-Fitr’.
IT, auto, capital goods and metal stocks came under pressure, which restricted the gains.
Lupin topped the Sensex gainers’ list, soaring 6.25 per cent after the company received Establishment Inspection Report from USFDA for the Goa facility, followed by Hind Unilever 3.03 per cent.
The recovery also got support from gains in Dr Reddy’s, HDFC, HDFC Bank, Power Grid, ITC, Cipla, NTPC, Axis Bank and Sun Pharma, rising by up to 2.97 per cent.
Punjab National Bank rose 2.68 per cent as its arm PNB Housing Finance approached Sebi for an IPO to raise Rs 2,500 crore.
Of the 30-share Sensex pack, 12 advanced while 18 fell.
BSE healthcare counter saw maximum activity with gains of 1.14 per cent, followed by FMCG (0.92 per cent), power (0.30 per cent), banking (0.24 per cent) and realty (0.20 per cent).
The small-cap index ended 0.04 per cent higher while the mid-cap index fell 0.41 per cent.
The buy momentum continued as foreign portfolio investors (FPIs) net bought shares worth Rs 265.63 52 crore on Tuesday, provisional data from the stock exchanges showed.
Global stocks presented a mixed picture. Hong Kong’s Hang Seng edged up 1.03 while Japan’s Nikkei fell 0.67 per cent and Shanghai Composite shed 0.01 per cent.
European stocks extended their early advance, with Britain’s FTSE, Germany’s DAX and France’s CAC 40 climbing up to 1.61 per cent.
“The market is consolidating while awaiting the next triggers from the start of earnings season next week and the Monsoon session of Parliament to take cues on sustainability of the recent rally,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
“Indeed, 7th Pay Commission recommendations and the initial development of monsoon have been gradually discounted by the market.”
The market breadth turned positive as 1,546 stocks ended higher and 1,207 declined while 148 ruled unchanged.
The total turnover fell to Rs 2,878.18 crore, from Rs 3,163.71 crore on Tuesday.