Bulls continued to have upper hand at Dalal Street for the ninth consecutive session on Tuesday after normal monsoon forecast for June-September period, as investors await corporate earnings. Positive global cues also boosted sentiment.
Benchmark indices posted gains for ninth straight day for the first time since January 2015. The 30-share BSE Sensex was up 89.63 points at 34,395.06, taking total nine-day gains to nearly 1,400 points.
The 50-share NSE Nifty rose 20.30 points to 10,548.70 while the broader markets also ended mildly higher.
The market is expected to consolidate further with a positive bias and all eyes will be on corporate earnings, experts suggest.
“Corporate earnings season which kicked in last week and monsoons would decide the medium-term outlook for markets in a year which has several state elections coming up starting next month,” S Ranganathan, Head of Research at LKP Securities said.
He expects the Nifty to deliver high single-digit return this fiscal amid higher volatility, uncertain global cues, geopolitical issues and rising yields.
On the global front, European markets were higher, tracking modest overnight gains after data showed China’s economy grew slightly more than anticipated in Q1CY18. Germany’s DAX, Britain’s FTSE and France’s CAC were up 0.3-0.9 percent at the time of writing this article.
Asian markets ended lower as investors digested the China data. China’s Shanghai Composite ended down 1.4 percent and Hong Kong’s Hang Seng declined 0.83 percent.
Back home, the rupee closed at 7-month low of 65.64 against the US dollar, down 15 paise from previous settlement.
The Nifty Midcap index closed mildly higher after volatility throughout the session.
Jewellery stocks Goenka Diamond, PC Jeweller, Titan Company, Renaissance Jewellery, Tara Jewels and TBZ gained up to 9 percent ahead of Akshaya Tritiya tomorrow.
Hotels stocks were also on buyers’ radar. Indian Hotels, Taj GVK, Lemon Tree Hotels and Kamat Hotels rallied up to 20 percent.
“The robust growth in foreign tourist arrivals, limited new room additions along with an uptick in domestic demand would be key structural positive growth drivers for the hotel sector in the long run. The October-March period is considered to be a strong season for the sector that accounts for around 60-65 percent of overall annual sales,” ICICI Securities said.
The rise in occupancy levels supported by a healthy pick-up in demand (domestic + international) is expected to lead to a rise in room rates (ARRs) and robust expansion in margins of all established large hotel players in India, going forward, as 60 percent of total operating costs are fixed in nature, according to the brokerage house.
Nifty Realty and FMCG were the biggest gainers among sectoral indices, rising 1 percent each.
Real estate stocks like Godrej Properties, Phoenix Mills, Indiabulls Real Estate, DLF, Puravankara, Kolte-Patil and Hubtown gained up to 7 percent.
In the consumption space, United Breweries, HUL, Emami, Jubilant Foodworks, ITC, Marico, Tata Coffee and Parag Milk Foods gained up to 5 percent. However, Fortis Healthcare, UCO Bank and IRB Infrastructure fell up to 3 percent.
HDFC, ITC, ICICI Bank, Reliance Industries and HDFC Bank, which gained up to 1.4 percent, supported the market whereas Axis Bank, Infosys, TCS, L&T, Maruti Suzuki and Tata Motors fell up to 1.8 percent.
Ramky Infrastructure was up 7 percent on receiving provisional completion certificate for the project in J&K while Bajaj Electricals gained 6 percent on bagging of order worth Rs 3578-cr for rural/urban electrification projects in Uttar Pradesh.