3rd October, 2013 : Comments by Amar Ambani, Head of Research, India Infoline
After a break on account of Gandhi Jayanti, the Indian equity market resumed its upswing on Thursday. The benchmark indices surged higher despite no progress in the US on the dispute between Democrats and Republicans in Congress regarding shutdown.
Besides other factors, sentiment got a boost after the rupee jumped over 1% tracking weakness in the dollar. The rupee was trading strong by 65 paise at 61.82 against the dollar.
The beaten down banking stocks witnessed buying interest as the Bank Nifty on the National Stock Exchange surged above 10200 mark. Stocks like Axis Bank, Bank of Baroda, HDFC Bank, IndusInd Bank and ICICI Bank were among the top gainers.
Commenting on the same, Amar Ambani, Head of Research at IIFL said, “With currency stabilizing and RBI committing adequate liquidity in the system, expectations are rising around further reduction in the MSF rate in near term. Easing of the rates at the short-end bodes well for significantly wholesale funded banks such as Yes, IndusInd, Axis and ICICI. PSU Banks were in the limelight as the government is likely to soon announce a plan to re-capitalize them”.
Barring the BSE FMCG index, all the other major sectoral indices ended in the positive terrain. BSE Metal index (up 4%), BSE Capital Goods index (up 2.85%), BSE oil and gas index (up 2.3%) and BSE IT index (up 2.3%) were among the top gainers.
Even the Mid-Cap and the Small-Cap index gained 1.3% and 0.9%. BSE Sensex closed at 19902 up 385 points, while NSE Nifty closed at 5,909 up 129 points over the previous close.
The advance-decline ratio favoured the bulls. On the BSE, 1471 stocks advanced against 937 declining stocks, while 152 remained unchanged.
The INDIA VIX was down 2% at 25.17. It hit a day’s high of 25.89 and low of 24.93.
Shares of Steel Strip Wheels surged 13% after the company recorded its highest ever monthly sale in September 2013.
Zensar Technologies gained 4% on reports that company has won major contracts in its manufacturing vertical in the US.
Jet Airways ended at Rs386 up 4.5% on reports that the Securities Exchange Board of India approved the Etihad Airways’ plan to buy a 24% stake in the company.
Shares of Sun Pharmaceutical Industries was up 2% after its subsidiary and Intrexon have formed a joint venture to develop controllable gene-based therapies for treatment of ocular diseases that cause partial or total blindness.