Sensex, Nifty Climb For Third Day But End Off Day’s High
Indian stocks climbed for a third day, but closed off the day’s high, led by a rally in automakers while banks continued to falter.
The S&P BSE Sensex gained 0.1 percent to 26,394 and the NSE Nifty advanced 0.2 percent to 8,142. The market breadth was in favour of the buyers at 1,034 advances, 580 declines and 268 stocks remaining unchanged.
Despite the three-day recovery, independent market expert Shahina Mukadam said there is still quite a bit of uncertainty in terms of which way will the market move heron. She said the Nifty is likely to remain between 7,900 and 8,500 for the next 2-3 months.
“We need to close above the 8100 level consistently to get some confidence back,” she told BloombergQuint in a phone conversation, adding “8,200-8,190 has become a strong resistance on the upside.”
Mukadam is bullish on the pharma companies after the outcome of the U.S. election and rupee deprecation to near all-time lows. The same factors, she said, should also aid information technology stocks.
“Infosys looks ripe for the picking taking into account the fundamentals and current valuations,” she said. She also likes TCS, Tech Mahindra and midcap names like NIIT Tech and HCL Infosystems.
The NSE Nifty Bank Index dropped 0.3 percent, making it the worst performing sectoral gauge on the exchange. The index has fallen 10 out of the last 12 trading sessions.
European Markets Open Mixed
Most European indices opened to positive as investors await the outcome of the referendum over constitutional reforms in Italy.