Nifty makes 52-week high, ends shy of 4900; rate-sensitives up
15 Sep 2009
It was a spectacular session for the equity benchmarks. The Nifty scaled upto 4899.45 during the day but ended short of 4900. Rate sensitives, infrastructure and metal stocks led the rally. A lot of big companies registered a rise in their advance tax numbers, which could be the reason behind today's sharp upmove.
The 30-share BSE Sensex closed at 16,454.45, up 240.26 points or 1.48%. The 50-share NSE Nifty made a new 52-week high today, surged 1.74% or 83.50 points, to settle at 4892.10. The broader indices also participated in the rally; the BSE Midcap Index was up 1.83% and the Smallcap was up 1.33%.
Based on the profitability estimates, companies pay advance tax every quarter. Nineteen companies have so far declared their Q2FY10 advance tax numbers. Out of nineteen companies seventeen registered a rise in their advance tax payouts. State Bank of India, Bank of India, TCS, BPCL, M&M, Lupin, Ambuja Cements witnessed a quarter-on-quarter (QoQ) increase in their advance tax payouts.
Deven Choksey of KR Choksey Securities said 4,900-4,950 on the upside on the Nifty and 4,700-4,750 on the downside would be the range. "We are probably looking for some triggers and one of the triggers that started today, which is advance tax numbers. This is going to be positive going forward. It is largely calculated that auto or banking or cement companies will have higher numbers of advance tax paid in this quarter. So, from that perspective I think this particular trigger has already happened. Maybe going forward in the next 15 days to three weeks' time from now, we will be calculating the earnings estimates for this quarter and then maybe the market should have a higher trajectory, I assume."
Rahul Mohindar of viratechindia.com said there was a lot of trading interest backing whole long-term bull strength which a lot of investors had started seeing as well. So 4,950 was certainly on the cards, he added.
All sectoral indices ended positive; the BSE Realty, Metal, Bank and Auto indices gained 2-4%.