Sensex, Nifty close at record highs; all eyes now on GST council meeting

Taking cue from global markets, the bulls charged on D-Street and pushed the benchmark indices to fresh highs on December 17. The BSE Sensex rallied more than 400 points to hit a record high of 41,401.65, while the Nifty climbed more than 100 points for its best performance of 12,182.75 during the session.

It was 20th time that the Sensex found a new peak and the ninth new high for the Nifty in 2019, so far, CNBC-TV18 data shows.

The final tally on D-Street: the Sensex rose 413 points to close as 41,352, while the Nifty closed with gains of 111 points to 12,165. Both the Sensex and Nifty hit fresh closing highs as well.

The investor wealth soared by Rs 1.26 lakh crore in a buoyant equity market as the BSE benchmark got help from strong global cues. Overnight, Wall Street hit a record high, while Asian markets hit their highest level in eight months on the US-China trade deal optimism.

Sectorally, the action was seen in telecom, metal, IT, finance, and banking stocks, while profit-taking was seen in consumer durables, realty, and healthcare spaces.

The Nifty Bank also hit a record high of 32,213.35, supported by gains in YES Bank, PNB, RBL Bank, HDFC Bank, Kotak Bank, and SBI.

Now all eyes are on the Goods and Services Tax (GST) Council meeting on December 18. Media reports suggest that the council may raise the base rate to 9-10 percent from the current 5 percent to raise additional revenue.

“While the market gains could extend in the coming sessions, we prefer to remain cautious at higher levels. We believe volatility is likely to remain high in the near term, hence investors should follow stock-specific approach focusing on fundamentally sound stocks at attractive valuations,” Ajit Mishra, VP- Research, Religare Broking Ltd, told Moneycontrol.

“Meanwhile, investors would keep a watch on the outcome of GST council meet as well as continue to track global markets.”

Top Nifty gainers: Vedanta, Bharti Airtel, and Tata Steel

Top Nifty losers: Titan Company, GAIL India, and Sun Pharma

Stocks & sectors

Sectorally, the BSE Telecom index rose 3.2 percent, followed by the BSE Metal Index which was up 3.02 percent and the BSE IT index gained 1.69 percent.

The BSE Consumer Durable index was down 0.68 percent followed by the healthcare index that slipped 0.19 percent and the realty index ended down 0.18 percent.

Volume spike of 200-1000% was seen in stocks such as Idea Cellular, Bharti Airtel, Castrol India, Grasim, JustDial and NIIT Technologies.

Long Buildup – NIIT Tech, Cummins India, Amara Raja Batteries, Bharti Airtel, Maruti

Short Buildup – RIL, Sun Pharma, and Voltas

Around 60 stocks hit fresh 52-week highs. These include Abbott India, Bajaj Finserv, HDFC, Crisil, NIIT Tech, Mahanagar Gas, ICICI Bank, Aditya Birla Fashion and DLF.

Stocks in news

Whirlpool: Shares of Whirlpool India fell 4 percent after its India Managing Director Sunil D’Souza resigned from the company.

Elgi Equipments: Elgi Equipments share price rose more than 3 percent after the company’s arm acquired a US-based company.

Kolte-Patil Developers: Kolte-Patil Developers share price gained 13 percent after it sold 500 apartments in its Life Republic township.

Paper stocks gain: Star Paper, Malu Paper, and Emami Paper share prices rallied over 9 percent each following media reports that the Budget 2020 could offer incentives to the industry.

Magma Fincorp: The share price slipped nearly 5 percent intraday after ICRA revised the rating outlook of non-convertible debentures to negative from stable.

Technical view

The Nifty formed a long bullish candle on the daily charts.

As long as the index sustains above 12,070 traders can expect this upmove to extend towards 12,290-12,350.

But, visible upsides from current levels are limited heading into events like the GST council meet and Trump impeachment session on December 18. The two events can alter the direction of the market.

It will be prudent for traders to book profits in long positions as the market heads beyond 12,200, where as fresh signs of weakness may emerge on close below 12,070 levels, say experts.

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