Sensex rallies 321 points on upbeat macro data; Nifty ends at record high of 12,283

MUMBAI: Benchmark equity indices Sensex and Nifty rallied on Thursday, in sync with the firm trend in world equities, on the back of gains in Reliance Industries and bank stocks.

Upbeat macro data also boosted investor sentiment.

GST collections for December remained above Rs 1 lakh mark for the second straight month.

Meanwhile, a private business survey showed that India’s factory activity expanded at its fastest pace in seven months in December as a jump in new orders prompted companies to ramp up production. Business optimism, however, fell to an almost three-year low as companies worried about challenging market conditions.

The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, rose to 52.7 in the final month of 2019 from November’s 51.2.

The 30-share Sensex closed at 41,627, up 321 points or 0.78 per cent. The NSE barometer Nifty shut shop at a record closing high of 12,283, up 100 points or 0.82 per cent.

Oil-to-telecom conglomerate Reliance Industries (74.16) contributed the most to the gains on Sensex, as it rose 1.65 per cent. Financials followed next with mortgage lender HDFC (60.92 points) and private lenders HDFC Bank (32.08 points) and IndusInd Bank (27.78 points) rising 1.57 per cent, 0.61 per cent and 3.05 per cent, respectively.

Market at a glance:
The bulls were in charge as more than two shares advanced for every one share than declined on BSE, indicating the market rally was broad based.

BSE 500 index closed 0.91 per cent higher. BSE midcap and smallcap indices rose 1.24 per cent and 1.40 per cent, respectively.

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Only two sectoral indices on BSE closed lower. BSE Basic Materials index led the gainers’ pack, with a 2.92 per cent increase. Zuari Global and sharda Cropchem rose 20 per cent each.

Shares of Hinduja flagship firm Ashok Leyland climbed 3.64 per cent even as the company reported a 28 per cent decline in total commercial vehicle sales for December at 11,168 units.

Jindal Steel and Power (JSPL) advanced 4.27 per cent after the company informed bourses that it registered strong growth in sales and production during the December quarter.

Analysts’ views:
“Government’s more than double capex plan for the next 5 years and uptick in steel prices with the announcement of US-China deal signing date pushed the market higher led by sectors such as infra, commercial vehicles, cement and metals. Strong expectation in union budget, positive data like GST revenue and India factory production at 7-month high brought a broad based rally.”

– Vinod Nair, head of research, Geojit Financial Services.

“Though the upside seems capped in the benchmark index, we believe the recent buoyancy in the broader markets is certainly encouraging. Having said that, we suggest maintaining caution while selecting bets from the midcap and smallcap space.”

– Ajit Mishra, VP – Research, Religare Broking

Global markets:
Asian shares kicked off 2020 on a strong footing spurred by Chinese markets after Beijing eased monetary policy to support the slowing economy, according to a Reuters report.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.43 per cent, after rising 5.6 per cent in December.

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European shares started the new decade on a strong note on fresh monetary stimulus from Beijing and growing Sino-U.S. trade optimism, while Airbus jumped after a report it toppled Boeing to become the world’s biggest planemaker, Reuters reported.

The pan-European STOXX 600 index was up 0.9 per cent.



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