Sensex gets FII boost, up 208 pts
Mumbai, Aug.18: The markets which saw see-saw trading in the first half perked up post noon following buying in Sensex heavy stocks like L&T, Tata Motors and RIL.
Tata Motors was up over 4 per cent to Rs 1,048.30 on the increased weightage given in the MSCI index.
After nearly six weeks of trading flat, the markets broke out on Wednesday on consistent FII buying.
The Sensex gained a handsome 208.27 points to close at 18,257.12 while the Nifty was up 65 points at 5479.15.
While it is difficult to pinpoint any particular reason for the market spurt on Wednesday, the feeling is that there was quite a bit of short covering said Mr Avinash Gupta of Bonanza Portfolio. There has also been consistent buying by FIIs. Mr Himanshu Varia of Asit C. Mehta, feels this level could sustain if the FIIs keep up their buying. There has been buying in stocks that traders feel will outperform. On the sectoral front the major gainers were IT, FMCG, Metal, Technology etc while the only sector in the negative was consumer durable.
The BHP Billiton takeover offer triggered positive sentiment in domestic fertilizer stocks like RCF, FACT, Nagarfert, Deepak Fertiliser etc as the outlook for fertilizer sector as a whole showed good prospects.For the Nifty it will be very difficult to stay at highs says Mr Alex Mathews of Geojit BNP Paribas.
“Today stocks like ONGC, Infosys etc gave support to the markets and one main thing to note is that the investors are focusing on neglected sectors like cement, fertiliser, shipping and tyres,” he said.
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