Sensex Gains Most In 3-Weeks, Nifty Above 8,850 On Fed Status Quo; IT Drops On Strong Rupee
Indian shares gained most in three-weeks after U.S. Federal Reserve held back on an interest rate hike triggering a global equity market rally.
The S&P BSE Sensex climbed 0.9 percent to 28,773; while the NSE Nifty advanced 1 percent to 8,867, its biggest-single day jump since September 6. The market breadth was skewed in favour of the bulls at 1,050 advances, 548 declines and 267 stocks remaining unchanged.
The mid- and smallcaps outperformed their larger counterparts. According to Hemen Kapadia, senior vice president (institutional equity) at KR Choksey Securities, it is more of a scrip-specific market.
“Some of the largecaps have moved up ahead of the fundamentals, which par for the course in a bull market. However, it is also true that these same stocks will fall the hardest if we see a correction going forward,” he told BloombergQuint by phone.
The S&P BSE Information Technology index was the sole loser among the 19 sectoral gauges on the exchange. The rupee climbed the most in two weeks, adding to the woes of the software services providers already facing client uncertainty.
The picture still looks quite dicey for the IT names, said Kapadia though adding the downside seems limited from a short to medium-term perspective. “We could see a sympathy rally coming in,” he said.
All said and done, Kapadia advises investors to “do their own research” before buying any stock or to invest in equities through SIPs. More importantly, he said stay away from leveraged products like futures and options.“There is nothing wrong with the market but a lot of it is fuelled by the quantitative easing and the money printing across the globe,” he said.
Sebi May Allow FPIs to Directly Trade in Capital Markets
With an aim to make it easier for overseas investors, regulator Sebi is considering allowing some categories of Foreign Portfolio Investors (FPIs) to directly trade in Indian markets, starting with debt segment.
Besides, the markets regulator plans asking companies to seek minority shareholders’ approval before granting special powers relating to operations of the firms to non-promoters such as private equity investors.
Sadbhav Infrastructure Jumps 16%
Shares of the infra firm gained as much as 16.1 percent to Rs 118. Earlier, its NCDs worth Rs 300 crore were assigned ‘CARE A+’ rating by CARE Ratings.
This is the biggest one-day jump for the stock since making its debt on September 16.