Continuing its rising streak for the third straight session,the BSE benchmark index Sensex today rose by another 84 points in early trade on sustained capital
The 30-share index,which had gained almost 275 points in the previous two sessions,rose by 84.59 points,or 0.46 per cent,to 18,513.20 points.
The wide-based Nifty of the National Stock Exchange moved up by 16.75 points,or 0.30 per cent,to 5,623.90.
Brokers said continued buying by funds and retail investors and covering-up of short positions by speculators ahead of tomorrow’s monthly expiry in the derivatives segment mainly buoyed the trading sentiment.
Stock of Kingfisher Airlines were back in some demand and traded 2.99 per cent higher at Rs 27.60 on reports that the country’s largest bank,State Bank of India has decided to extend a Rs 1,650 crore relief package for the company.
Sensex likely to ease early; Sun Pharma seen up
Sensex today is expected to face resistance early after climbing to their highest close in nearly seven months in the previous session,but the rally is unlikely to run out of steam.
K.K. Mital,head of portfolio management at Globe Capital Market in New Delhi,there could be profit-taking but the underlying momentum remained strong.
Any downside would be considered as an entry point by the people who missed out earlier,he said,adding he expected the market to bounce back by midday.
Investors are expecting the government will finalise a road map for infrastructure investments,while moderation of inflation should give the central bank more room to ease monetary policy.
The central bank reviews policy on March 15,and the government will unveil its annual budget the following day.
Tata Motors could rise after its chief financial officer said the company plans to double investments in its Jaguar Land Rover brands to 1.5 billion pounds ($2.4 billion) a year to help launch new products and variants.
Sun Pharmaceutical Industries is likely to rise after the U.S. Food and Drug Administration said it reached a limited,temporary arrangement to import Lipodox from the Indian drugmaker and its distribution subsidiary,Caraco Pharmaceutical Laboratories Ltd.
The MSCI’s broadest index of Asia Pacific shares outside Japan and the Nifty India stock futures traded in Singapore were both down 0.18 percent by 0232 GMT, pointing to a lower opening for the Indian market.
STOCKS TO WATCH
* Energy conglomerate Reliance Industries could rise after the company finalised a joint venture with Sibur,Russia’s largest petrochemical company,to set up a butyl rubber plant in India.
* State-run Bank of India is expected to rise after its board approved raising funds through issue of shares to the government and Life Insurance Corporation of India on a preferential basis.
* Private-sector lender Dhanlaxmi Bank is likely to fall after Fitch Ratings downgraded it to BBB- from BBB and also put it on rating watch negative citing risks to operating performance and thin capital base.
* Jubilant Life Sciences Ltd may rise after it said its unit signed a drug discovery pact with U.S.-based Mnemosyne Pharmaceutical Inc.