Journalism of Courage
Stock markets hit record highs on Monday as heavy buying in blue-chip stocks and the Supreme Court order allowing resumption of mining in Goa boosted overall sentiment.
The Sensex, which rose to its all-time high of 22,795.58, later settled 136 points higher at 22,764.83 — its life-time closing high — as investors went around shopping blue- chip stocks. The 50-share Nifty of NSE breached the crucial 6,800-mark to end the day at it its all-time closing high of 6,817.65, a rise of 38.25 points or 0.56 per cent. It set a fresh all-time high of 6,825.45 intra-day.
Analysts warned that the stock markets were unlikely to sustain strong gains given the Nifty is already up 8.2 per cent so far this year while caution is likely to prevail ahead of the outcome of the elections next month.
Vinod Nair, head-Fundamental Research, Geojit BNP Paribas Financial Services, said, “The early expiry in futures and FIIs’ long build-up in bank Nifty led the market to a higher level, which is likely to continue during the week considering the short expiry tenure. The index is likely to continue with its momentum aided further by Q4 results in the coming weeks. Sensex is expected to post 12-14 per cent YoY growth in earnings excluding the oil sector.”
“Ultimately, in the short-term, market move will depend on the ground reality from the recently concluded phase of the election… i.e. if BJP gains ground, the market can touch new highs,” he said.
Foreign inflows also boosted the market sentiment as FIIs bought shares worth a net Rs 433.40 crore on last Thursday, as per provisional data from the stock exchanges. “Buying in banking stocks, which had corrected to lower levels at the start of 2014, and other sectors like capital goods and metal are keeping markets at higher levels. Other beaten down sectors like realty and cement have also recovered and are participating in the current rally,” said Nidhi Saraswat, senior research analyst, Bonanza Portfolio.
Shares of Sesa Sterlite surged nearly 5 per cent after the Supreme Court allowed iron ore mining in Goa. Sesa Sterlite’s stock ended 4.78 per cent higher at Rs 201.80 on the BSE. During the day, the scrip rose by 7.45 per cent to Rs 206.95. The court allowed an annual cap of 20 million tonnes of iron ore to be extracted in Goa where mining was banned for nearly one-and-a-half years.
Re plunges to 1-month low on $ demand from importers
MUMBAI: The rupee lost a hefty 30 paise to end the day at almost one-month low of 60.59 against the dollar due to fresh demand for the US currency from importers, mainly oil refiners.
The rupee fell to 60.61 before settling at 60.59, a fall of 0.50 per cent from its previous close. The weakness was due to heavy dollar demand from importers to meet their month-end requirements. The benchmark six-month premium payable in September declined to 218.5-220.5 paise from 220-221.5 paise previously. ENS
