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Nifty hits 5350; Tata Steel, Hindalco, SAIL up

21 Jun 10 05:02 PM
MUMBAI: Stock indices moved up further, with the Nifty breaching 5350 resistance level. The market started off on a strong note, tracking gains across Asia after China said it proposes to remove the yuan’s peg against the US dollar and allow for more flexibility.

“Two big weekend developments could have a bearing on the market sentiment in the near term. The first one is the Government’s announcement that IRDA will continue to oversee ULIPs. This might set at rest long-standing anxiety over the ULIP issue and could revive the sale of the hybrid product. So, keep an eye on the flows from the domestic funds. FII inflows have improved in June after the May carnage.

The second one is China’s decision to pursue a more flexible currency policy. Asian markets are up smartly in reaction to the Chinese announcement. The dollar and euro have gained versus the yuan. But, one needs to be a little careful amid some ambiguity over China’s proposed currency reform.

We expect a higher opening for the Indian markets. The big question is whether the rally has legs to traverse further distance. The F&O expiry will make things somewhat volatile. If the NSE Nifty manages to sustain above 5300, there could be some comfort, However, selling pressure is not ruled out around those levels,” said India Infoline report.

At 10:30 am, Nifty was ruling at 5352.10, up 89.50 points or 1.70 per cent. The National Stock Exchange benchmark kickoff the session at 5266.50 versus Friday’s close of 5262.60. The 50-share index touched a high of 5356.

Sensex was higher by 306.97 points or 1.75 per cent at 17,877.79. The Bombay Stock Exchange sensitive index opened at 17,654.81 against the previous close of 17,570.82. The 30-share index recorded day’s high of 17893.57.

BSE Midcap Index was up 1.19 per cent and BSE Smallcap Index moved 1.35 per cent higher.

The upside was led by metal stocks, with the BSE Metal Index gaining 3.94 per cent to trade at 15,405.85. The other big sector gainers were realty, banking, auto, and consumer goods with the respective indices up 1.88 per cent, 1.71 per cent, 1.64 per cent and 1.28 per cent.

Tata Steel (4.73%), Hindalco (4.20%), SAIL (3.52%), ICICI Bank (3.23%) and HDFC (3.18%) were the top Nifty gainers.

Novelis, the international subsidiary of Hindalco Industries, could bid for the rolled products division of global metals major Rio Tinto Alcan as the Aditya Birla Group seeks to buy high value manufacturing products in Europe and the US.

Reliance Power (-0.80%) and HCL Tech (-0.59%) were the only two losers.

Market breadth was positive on the NSE with 2141 gainers against 951 declines.

Meanwhile, the Asian markets moved higher on China’ decision to pursue a more flexible currency policy. Nikkei 225 was up 2.10 per cent, Hang Seng moved 2.84 per cent up and Strait Times advanced 1.63 per cent.