Sensex rallies over 9% in January series; Vodafone verdict sentimental positive

NEW DELHI: The S&P BSE Sensex surged 9.09 per cent in January series, led by gains in realty, consumer durable, and capital goods stocks. The 50-share Nifty index also managed to rally 9.5 per cent in the same series.

Both Sensex and Nifty managed to hit fresh lifetime highs in January series. Sensex surged to a lifetime high of 29,786.32 and Nifty recorded a high of 8985.05, which is close to its next crucial psychological level of 9,000.

On Thursday, Nifty bounced back in the last hour of trade and closed near the 8,950 level on the back of short coverings on the last day of January series.

The government's decision not to appeal against Vodafone in tax case, stake sale in Coal India and lower crude oil prices acted as triggers for the market in today's session.

"Nifty at 9000, is the psychological level and I mean I have been assuming since the last two-three days that possibly, we could see that in the new series," says Ambareesh Baliga, Market Expert.

"Vodafone ruling has been a sentimental booster for the markets," he adds.

The 50-share index finally closed at 8,952.35, up 38.05 points or 0.43 per cent. It touched a high of 8,966.65 and a low of 8,861.25 in trade today.

The S&P BSE Sensex ended at 29,681.77, up 122.59 points or 0.41 per cent. It touched a high of 29,740.63 and an intraday low of 29,378.30 in trade today.

The domestic bourses upheld the prevailing positive bias on F&O expiry and concluded the session with marginal gains. But, a further consolidation cannot be ruled out, say experts.

"We reiterate our view that index would undergo in the consolidation phase prior to next directional move. Hence, traders are advised to maintain stock specific approach and keep trailing stop losses with every rise," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"On the other hand, investors should utilize any decline as a buying opportunity and give preference to private banking, pharma, FMCG and select capital goods counters for fresh long positions," he adds.

Among the sectoral indices, the S&P BSE Capital goods Index gained 0.82 per cent, the S&P BSE FMCG Index was 1.07 per cent higher and the S&P BSE Oil & gas Index advanced 1.55 per cent.

Dr Reddy's Laboratories (up 3.7 per cent), HDFC Bank (up 3.4 per cent), BHEL (up 2.9 per cent), Reliance Industries (up 2.4 per cent) and ITC (up 2.01 per cent) were among the Sensex gainers.

HDFC (2.6 per cent), Coal India (2.3 per cent), State Bank of India (2.3 per cent), M&M (1.4 per cent) and ICICI Bank (1.02 per cent) were among the index losers.