14 Oct 2009, ET Bureau
MUMBAI: Indian benchmarks climbed to new 52-week highs Wednesday as buying activities intensified across the board. Robust IIP data and positive Asian markets were driving the market higher, said dealers.
“On Monday robust growth numbers for IIP and reconciliation possibilities between Ambani bros, pulled the market up. But it is still in the same trading range, though risk of it falling below critical support of 4900 has reduced now. The robust IIP numbers are though good, but added flavor may be due to base effect and early onset of festival season this year. So one need to discount these factors before going gung ho.
We continue to maintain cautious stance and watch for critical resistance level of 5100 to breach decisively, for taking a short term positive view.
Meanwhile sharply falling dollar is enabling faster flows towards emerging markets, in August month FDI is up at $ 3.27 bn against 2.33 bn for the same month last year. Cumulative FDI for current FY is at $ 14.14 bn against 14.65 bn. FIIs flows have also crossed $13 bn this calendar against outflows of 10bn last year. So till stronger flow continues, correction in market may allude market men.
The markets may face some sentimental setback today due to increased tension between China & India, due to Chinese objection to Indian PM's visit to Arunanchal. India responded aggressively to Chinese objections, as state being integral part of India and China has no right to object to Indian PM visit,” said Anand Rathi report.
At 12:27 pm, National Stock Exchange’s Nifty was at 5122.85, up 68.60 points or 1.35 per cent. The 50-share hit a 52-week high of 5124.70 today’s trade.
Bombay Stock Exchange’s Sensex was at 17244.34, up 217.67 points or 1.28 per cent. The 30-share index hit a high of 17252.58 and low of 17117.90.
“Nifty has strong support at 4,965-4,920 level, if this level gets broken then only witness huge selling pressure merging and Nifty might again test 4,820-4,730 very shortly. On the higher side 5,110 is the stiff resistance area,” said Nirmal Bang report.
BSE Midcap Index was up 1.63 per cent and BSE Smallcap Index gained 1.58 per cent.
Amongst the sectoral indices, BSE Metal Index was up 4 per cent, BSE Auto Index gained 2.30 per cent and BSE Capital Goods Index moved 2.17 per cent higher.
Cairn India (7.61%), Jindal Steel (6.66%), M&M (5.35%), Sterlite Industries (5.06%) and Tata Motors (4.10%) were amongst the top Nifty gainers.
Reliance Communications (-3.47%), Bharti Airtel (-3.20%), Ambuja Cement (-3.03%), IDEA (-2.83%) and BPCL (-2.08%) were from the index losers.
Market breadth was positive on the BSE with 1732 advances and 851 declines.
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