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Nifty bounces over 4850; Bharti languishes

17 Feb 10 03:20 PM
MUMBAI: Indian equity benchmarks surged in the last half hour of trade on Tuesday to end above psychological resistance levels, taking cues from positive European markets. All the sectoral indices ended in the green, with auto, IT and metals in the lead.

Market opened on a positive note but turned range-bound due to lack of cues as most global markets were shut on account of public holidays. However, positive European markets and US stock futures pushed the indices higher. Meanwhile, Bharti Airtel continued to reel under pressure as the company’s $10.7 billion bid for Zain Africa is said to be much higher than its enterprise value of $6 billion.

Bombay Stock Exchange’s Sensex ended at 16,226.68, up 188.33 points or 1.17 per cent. The 30-share index hit a high of 16,310.39 and low of 16,021.29.

National Stock Exchange’s Nifty was at 4855.75, up 53.8 points or 1.12 per cent. The index touched a high of 4880 and low of 4791.35 in today’s trade.

“Nifty may bounce back another 50-70 points but the upmove should be used as an opportunity to square long positions and initiate fresh shorts. We are anticipating 4600 levels on the Nifty on expectations of dollar appreciation against euro and yen which is negative for both commodities and equities,” said Siddarth Bhamre, Head – Derivatives at Angel Broking.

The BSE Midcap Index closed up 0.63 per cent and BSE Smallcap Index moved 0.54 per cent higher.

Amongst the sectoral indices, BSE Auto Index was up 1.37 per cent, BSE IT Index gained 1.36 per cent and BSE Metal Index moved 1.58 per cent higher.

Among frontline stocks, smart gains in Ranbaxy Laboratories (8.59%), ACC (4.89%), Ambuja Cements (4.06%), Hindalco Industries (3.83%) and Hindustan Unilever (3.63%) aided the Nifty pullback.

Bharti Airtel (-4.15%), Axis Bank (-0.22%), Hero Honda (-0.2%) and Jindal Steel (-0.14%) were the lone laggards in the 50-share index.

KIM ENG India Securities has downgraded Bharti Airtel to ‘Sell’ from earlier ‘Hold’ after the company entered into discussion to buy Zain Africa. It has set a target price of Rs 245.

Market breadth on BSE was positive with 1545 advances against 1244 declines.

European markets were in the green and US stock futures hinted at a positive start. At 4:45 pm IST, Dow Jones futures was up 0.36 per cent, S&P 500 gained 0.45 per cent and Nasdaq 100 moved 0.52 per cent higher.