An evening walk down Dalal Street | Sensex ends at record high, Nifty manages to close above 11K; RIL surges 4%

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Driven by positive global cues as well as a good start to earnings season, backed by TCS, pushed the markets to fresh records on Thursday. Investors looked to cash in on the bullish momentum as buying was visible across sectors. Having said that, the Street closed off the day’s high points.

The Sensex slipped over 100 points after notching record high.The Nifty, meanwhile, managed to cross 11,000-mark for the first time since February 1 and maintained the momentum through the afternoon. It closed above the psychological 11K-mark.

At the close of market hours, the Sensex ended up 282.48 points or 0.78% at 36548.41, while the Nifty was up 74.90 points or 0.68% at 11023.20.

The 50-share index is less than 2% away from its previous record high of 11,171.50.

In the broader markets, Nifty Midcap Index remained in the red for most part of the session.

A key milestone that helped indices on Thursday was a huge surge in the shares of Reliance Industries. The stock reclaimed its m-cap level of USD 100 billion after 2008 with its current m-cap now standing at Rs 6.83 lakh crore.

HDFC Twins (HDFC Bank and HDFC) and RIL were the top contributors to Nifty’s gain, while the top losers were Infosys, Vedanta and M&M. HDFC Bank, ICICI & IndusInd contributed nearly 135 points to Nifty Bank gain.

“Markets have crossed all time highs on the back of global cues as well as solid start to earnings season with TCS beating expectations. The divergence between large caps and mid caps has widened in 2018 with mid-cap and small cap indices still down 15-20% from the top. Even within Nifty – select high quality stocks with earnings visibility are driving the index…,”Gautam Duggad, Head of Research at Motilal Oswal Institutional Equities said in a statement

Going forward, he expects rangebound movement on the market, citing busy political calendar.

“Our relative preference stays with large caps as mid-caps are still trading at premium to large caps. We like Consumption, Auto, Private Financials and IT,” his statement further added.

Stocks in news

Reliance Industries’ stock rallied upwards to end 4 percent higher and reached an intraday high of Rs 1098.80. The stock has been seeing an upward rise for the fifth consecutive day with overall gains of 13 percent in the period. The company crossed the USD 100 billion market capitalization mark.

Ashoka Buildcon’s shares rose 17 percent intraday before closing 5 percent higher as the company decided to go ex-bonus. The company proposed bonus issue in the ratio of 1:2.

Coal India managed to end flat, before gaining 2 percent, following news of a probable 1.5 percent divestment by the government by the end of August this year.

Larsen and  Toubro surged 2 percent higher as the construction arm of the company bags orders worth Rs 2388 crore.

Share price of Coffee Day Enterprises rose 2 percent after its subsidiary entered into an agreement with UberEats to distribute food products.

Lastly, shares of retail apparel Trent saw profit booking in the last hour as the stock rallied 7.5 percent intraday, but closed over 2 percent higher. Jefferies has upgraded the stock to “Buy” from “Hold”.

Global Update

Markets in Europe were higher as investors looked to bounce back from sharp losses seen earlier on the back of trade war fears. Stoxx 600 was up nearly 0.4 percent.

Meanwhile, Asian markets ended higher as investors too looked to shrug off trade war fears even as US has threatened fresh tariffs. The Shanghai composite closed up 2.18 percent at 2,838.30 while the Nikkei rose 1.17 percent, or 255.75 points, to close at 22,187.96.
Source: moneycontrol