Equity indices extend gains, exit polls outcome uplift sentiments

Mumbai, Dec 15 (IANS) Riding on the exit polls outcome which predicted a BJP win in Gujarat and Himachal Pradesh assembly elections, the two key indices of the domestic markets extended gains for the second consecutive session on Friday.

According to market observers, the key equity indices -- which surged to higher levels supported by healthy buying in metals, consumer durables and auto stocks and a strong rupee -- trimmed some gains on the back of weak global markets.

On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) rose by 81.15 points or 0.79 per cent to 10,333.25 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,462.97 points -- up 216.27 points or 0.65 per cent -- from its previous close.

However, the BSE market breadth was bearish -- 1,572 declines and 1,049 advances.

In the broader markets, the S&P BSE mid-cap index was up by 1 per cent and the small-cap index by 1.38 per cent.

"Markets ended higher on Friday on the back of the outcome of Gujarat and Himachal Pradesh exit polls. The markets opened on a strong note in the morning session and then traded in a range for the rest of the day," Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

"Some selling was seen towards the close on the back of weakness in the global equity markets," he added.

On the currency front, the Indian rupee strengthened by 30 paise to close at 64.04 against the US dollar from its previous close at 64.34.

Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 921.03 crore while domestic institutional investors purchased stocks worth Rs 635.44 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Market rallied with the ecstasy of Gujarat exit poll result which suggested a clear victory for the ruling party. Underlined disruptions on government reforms have not influenced the poll.

"Metals gained its sheen after the recent correction, while bank nifty and auto outperformed the main index as investors used the advantage of bargaining opportunity," he added.

All the sub-indices of the BSE ended in the green barring the S&P BSE telecom index, which was down 7.98 points.

Sector-wise, the BSE S&P metal index surged by 379.91 points, followed by consumer durables index by 359.02 points and auto index by 335.21 points.

Major Sensex gainers on Friday were: Mahindra and Mahindra, up 3.56 per cent at Rs 1,482.65; Coal India, up 3.02 per cent at Rs 271.05; Dr. Reddy's Lab, up 2.52 per cent at Rs 2,372; HDFC Bank, up 1.95 per cent at Rs 1,873.05; and Adani Ports, up 1.75 per cent at Rs 401.95.

Major Sensex losers were: Cipla, down 2.53 per cent at Rs 575.85; ONGC, down 0.87 per cent at Rs 182.85; Asian Paints, down 0.45 per cent at Rs 1,119.95; Tata Consultancy Services, down 0.42 per cent at Rs 2,547.85; and State Bank of India, down 0.41 per cent at Rs 312.75.