Terrific Tuesday! Sensex back above 38,000 on value buying

Indian market recovered on March 26 after falling for three consecutive sessions. Value buying at lower levels pushed S&P BSE Sensex above 38,000 while the Nifty50 closed just a shade below 11,500 levels.

The final tally – the S&P BSE Sensex closed 424 points higher at 38,223 while the Nifty50 ended 129 points up at 11,483.

On the sector front, banking was the top performer, ending with gains of 2.2 percent followed by Capital Goods and Consumer Durables. On the other hand, the IT sector ended with losses of 0.6% due to rise in the rupee.

In broader market, the S&P BSE Midcap index rose 1.09 percent while the S&P BSE Smallcap index ended 0.6 percent higher.

The Nifty50 index recovered most of the losses seen in the last three trading sessions. The index fell 178 points from the high of 11,532 recorded on 19 March to 11,354 witnessed on March 25.

Global growth outlook still remains a concern but value buying at lower levels helped Senses and Nifty reclaim crucial resistance levels, suggest experts.

“The buying in index heavyweights continued after the market saw a couple of days of correction, which was actually a healthy sign. There seems to be enough appetite to put money to work in good Indian companies with robust fundamentals,” Devang Mehta, Head – Equity Advisory, Centrum Wealth Management told Moneycontrol.

“With the fourth quarter result season being just around the corner, the participants will watch the earnings trajectory closely for the rally to sustain or gather further steam,” he said.

Mehta further added that as the important benchmark indices move toward life high, broader markets still offer a lot of opportunities to accumulate good quality businesses at reasonable valuations.

Stocks in News

Reliance Industries climbed over 3 percent on a report of acquisition of menswear brand John Players from ITC.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Jet Airways gained 6.5 percent after lenders took control of the board and Naresh Goyal & his wife stepped down from the board. Lenders will infuse up to Rs 1,500 crore via debt instruments, in the cash-strapped company.

HCC rallied 9 percent after signing terms with a consortium of investors led by BlackRock, which will seek to monetise an identified pool of arbitration awards and claims for a consideration of Rs 1,750 crore.

Laurus Labs gained 4 percent signing a strategic partnership agreement with Global Fund.

DLF advanced 4 percent after the launch of QIP to raise over Rs 3,000 crore.

Global Updates:

European markets were trading marginally higher on easing global recession fears. France’s CAC, Germany’s DAX and Britain’s FTSE were up 0.1-0.5 percent at the time of publishing this copy.

Most Asian markets also ended higher after the heavy losses seen in the previous session due to global growth concerns. Japan’s Nikkei rallied 2.15 percent while China’s Shanghai Composite fell 1.5 percent.

Brent Crude futures, the international benchmark for oil prices, were trading 0.7 percent higher at $ 67.70 a barrel at the time of publishing this copy.