Indian markets settled higher on Friday with Sensex closing above 20,000 for the first time in two years. Oil & Gas stocks led the rally in the market while IT shares dropped led by Wipro on disappointing guidance.
ONGC and oil marketing companies (OMCs) rallied after OMCs raised diesel prices by 50 paise following government's approval to change diesel prices by small amounts from time to time. It is expected the OMCs will announce similar hikes on monthly basis in near-term.
At the close, the benchmark 30-share index, BSE Sensex gained 75.01 points or 0.38% at 20,039.04 with 16 components posting rise. Meanwhile, the broad based NSE Nifty climbed by 25.20 points or 0.42% at 6,064.40 with 25 components posting rise.
Rakesh Goyal, senior vice president, Bonanza Portfolio said,'''Nifty surged to make new 52-week high in this week at 6083.40 and closed above 6050 level which is a positive indicator. Increase in diesel price can lead to higher inflation in coming months, and still puts a question on whether the RBI may still put hold on rate cuts. Technically too, 6050-6150 being key resistance zone, volatility may be witnessed in coming sessions. In coming week, 6075 shall be key deciding level. Above 6075, likely targets are 6150-6175, while below 6025, support may be found at 5990-5950.''
Oil & Natural Gas Corporation contributed rise of 54.81 points in the Sensex. It was followed by Housing Development Finance Corporation (23.32 points), Reliance Industries (18.73 points), I C I C I Bank (17.39 points) and NTPC (13.79 points).
However, Wipro contributed fall of 24.46 points in the Sensex. It was followed by H D F C Bank (17.97 points), Hindustan Unilever (13.54 points), Mahindra & Mahindra (8.84 points) and Bharti Airtel (7.74 points).
Major gainers in the 30-share index were Oil & Natural Gas Corporation (7.31%), NTPC (4.59%), Maruti Suzuki India (3.26%), G A I L (India) (2.82%), Housing Development Finance Corporation (1.56%), and Tata Power Company (1.55%).
On the other hand, Wipro (7.88%), Hero Motocorp (2.86%), Dr Reddy'S Laboratories (2.60%), Hindustan Unilever (2.10%), Jindal Steel & Power (2.03%), and Sterlite Industries (India) (2.03%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Mid and small caps underperformed their larger counterparts declining -0.23% and -0.52% respectively.
The major losers in the BSE Midcap were Allcargo Logistics (2.23%), CORE Education and Technologies (1.07%), A I A Engineering (0.13%), Aban Offshore (0.09%) and Alstom India (0.08%).
The major losers in the BSE Smallcap were A2Z Maintenance & Engineering Services (4.22%), Action Construction Equipment (2.82%), Aarti Industries (2.24%), Trident (0.56%) and Styrolution ABS (India) (0.55%).
Sectors in Limelight
The Oil & Gas index was at 9,571.03, up by 287.24 points or by 3.09%. The major gainers were Indian Oil Corporation (10.46%), Bharat Petroleum Corporation (9.64%), Oil India (8.95%), Hindustan Petroleum Corporation (4.99%) and G A I L (India) (2.82%).
The PSU index was at 7,861.68, up by 211.63 points or by 2.77%. The major gainers were Bank Of Baroda(2.44%), Balmer Lawrie & Company (1.33%), Andhra Bank (1.11%), Bank Of India (0.98%) and Allahabad Bank (0.27%).
The TECk index was at 3,817.38, down by 43.69 points or by 1.13%. The major losers were Reliance MediaWorks (1.95%), Bharti Airtel (1.5%), Dish TV India (1.45%), D B Corp (0.58%) and Oracle Financial Services Software (0.25%).
The IT index was at 6,405.62, down by 73.44 points or by 1.13%. The major losers were Mahindra Satyam (2.89%), Hexaware Technologies (2.57%), Tech Mahindra (2.21%), Oracle Financial Services Software (0.25%) and Infosys (0.23%).
Market breadth was negative with 1,305 advances against 1,713 declines.
Value and Volume Toppers
Hindustan Petroleum Corporation topped the value chart on the BSE with a turnover of Rs. 1,010.33 million. It was followed by State Bank Of India (Rs. 846.02 million), Oil & Natural Gas Corporation (Rs. 752.16 million) and Reliance Industries (Rs. 703.70 million).
The volume chart was led by Ashok Leyland with trades of over 10.46 million shares. It was followed by Unitech (6.84 million), Suzlon Energy (4.32 million) and Confidence Petroleum India (4.15 million).