Smallcap index hits new peak, RIL up at 4-month high. Today's market action in 10 points

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Indian stocks ended higher for the third day in a row with strong gains seen in the broader markets. Positive global sentiment along with gains in heavyweight Reliance Industries and energy stocks lifted Indian markets. The NSE Nifty 50 index ended 0.77% higher at 15,097.35 and the S&P BSE Sensex closed up 0.51% at 51,039.

Here are 10 things to know about today’s market performance:

1) BSE midcap index rose 1%. The smallcap index surged 1.4% to 20,304, hitting a intraday record high of 20,321 in today’s session.

2) Also in focus today was PSU stocks. The NIFTY CPSE index surged 4.5% today.

3) Prime Minister Narendra Modi on Wednesday made his strongest pitch for privatisation of non-strategic PSUs, saying the government has no business to be in business and sustaining loss-making units on taxpayers’ money.

4) Reliance Industries was the biggest boost to the Nifty, jumping 4% to scale a four-month high. Shares of Coal India closed 8.4% and was the top percentage gainer on the Nifty.

5) Global markets rallied today after US Federal Reserve Chairman Jerome Powell’s reiteration the Fed wouldn’t adjust policy until the economy is clearly improving. Financials, which saw sharp gains a day after the government allowed private-sector lenders to carry out government transactions, trimmed some gains.

6) The Nifty private bank index pulled back from a 2.5% rise to finish the session 0.49% higher. It is, however, still up over 16% so far in February.

7) Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Nifty rose for the second day with an upgap, but did not close at its intra day highs. In case we see a downgap opening and the gap is not filled soon, it could mean a near term top for the markets. However the broader market is in good shape with advance decline ratio being hugely positive and BSE Smallcap index touching its all time high. On upmoves, Nifty could face resistance at 15176-15188 band.”

8) “Global cues and upcoming macroeconomic data i.e. GDP data will dictate the trend from hereon. Mostly sectoral indices trading in the tandem with benchmark however we feel banking has the potential to help the index inch further higher. Amid all, we feel it’s prudent to wait for further clarity and limit naked leveraged positions,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

9) The third-quarter GDP data will be released on Friday.

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10) “On the immediate basis, the index has good support near the 15k mark if the index managed to sustain above the 15k mark then-current positive move can extend further towards the 15200-15250 zone which are the hurdle zone on the higher side and if fails to sustain then strong profit booking can be a witness,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

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