Nifty tops 10,000 as global frictions ease

NSE’s Nifty-50 index regained 10,000-level last seen in early August with good buying seen in banks, capital goods, utilities and oil and gas stocks. Improvement in global geopolitical situation and gain in other major Asian and European market boosted sentiments.

Nifty-50 first crossed 10,000 mark on July 25, 2017 and after trading above 10,000 level for 11 sessions fell below 10,000 level on August 8, 2017.

Buying in Indian stocks was led by domestic institutional investors after range bound trading seen in last few weeks, while foreign investors were net sellers.

After a positive opening on Monday, Nifty-50 finally closed at 10,006.05 up 71.25 points or 0.72 per cent. Sensex too gained 194 points or 0.61 per cent to close at 31,882.

BSE Mid-cap and BSE Small-cap indices also gained 0.71 per cent and 0.77 per cent respectively.

Among the Asian markets Japanese market benchmark Nikkei gained 1.41 per cent and Hong Kong’s Hang Seng index gained 1.04 per cent. Positive opening of European market also anchored the benchmark indices in the green.

Karthikraj Lakshmanan, senior fund manager – Equities, BNP Paribas Mutual Fund said, “markets across the globe took a breather from the recent sell-off and traded in positive territory. Investors heaved a sigh of relief as the North Korean dictator abandoned his weekend plans of launching another missile.”

The domestic institutional investors were net buyers of equities worth Rs 877.37 crore. With heavy fund flows reported in domestic equity mutual funds in August 2017 by Association of Mutual Funds in India, on Monday’s surge in benchmark indices seemed clearly coming largely from domestic mutual fund buying.

However, in the domestic market selling by foreign portfolio investors continued. FPIs were net sellers of equities worth Rs 392.52 crore.

Sneha Seth, derivative analyst, Angel Broking said, “Post some consolidation, the benchmark index started-off the session with an upside gap on back of strong global cues. Nifty extended its gains during the day to finally conclude to session above 10,000 marks.”

Among the bank stocks index heavy weight HDFC Bank gained 1.95 per cent on BSE to close at Rs 1822.90. HDFC Bank’s market capitalisation of Rs 4.70 lakh crore stands next only to Reliance Industries (Rs 5.32 lakh crore) and Tata Consultancy Services (Rs 4.71 lakh crore). Another index heavy weight Larsen & Toubro gained 3.80 per cent at Rs 1216.90, Asian Paints 2.84 per cent (Rs 1236.85), Maruti gained 2.16 per cent (Rs 8,145) and NTPC was up 1.67 per cent (Rs 170.40).

IndusInd Bank gained 5.56 per cent to close at Rs 1790.65 as management confirmed exclusivity agreement to discuss merger of Bharat Financial Inclusion formerly known as SKS Microfinance.