The Nifty crossed the 4,000 mark yet again. The Sensex gained 311 points to close at 13,695.58. Reliance Industries rallied to a lifetime high of Rs 1,460 and crossed Rs 2,00,000 crore in overall market capitalisation. Cement stocks bounced back and posted decent gains.
Newly listed ICRA zoomed to Rs 957.10, a gain of Rs 159. All of them reflected the overall bullishness in the stock market that was fuelled by better than expected Infosys results and lower than estimated inflation numbers last Friday. Monday morning’s Asian market rally on the back of a few good corporate earnings from the US aided the rally along.
“Liquidity is the main driving force in the market,” said Phani Shekhar, fund manager, Angel Broking. Shekhar said the fear of interest rate hikes had subsided for the time being despite a rate hike warning from Federal Reserve as the European Commercial Bank and the Bank of Japan have indicated benign interest rates.
Reliance Industries, which has an 11.66 per cent weight in the Sensex, shot up by Rs 49.35 and its market capitalization zoomed to Rs 203,452.17 crore after its chairman Mukesh Ambani told reporters on Monday that he saw robust demand for petrochemicals over the next 12-18 months. “The petrochemicals cycle has not peaked yet,” Ambani said.
Lifestyle changes and higher use of plastics and demand for polyester after a duty reduction should see the company growing at a rate higher than the GDP, said Jaspreet Singh, analyst at Prabhudas Liladhar. He feels there is another 10 per cent upside left for the Reliance scrip.
Ahead of fourth-quarter results, TCS moved by Rs 17.45 to Rs 1,280.10. Infosys was up almost 2 per cent at Rs 2,128 and Wipro moved by 3.34 per cent to Rs 586.
Three different fund houses put out different price targets for Infosys, Rs 2,500, 2,600 and Rs 2,700, said Sapan Patel, BSE member. Despite the pressure on margins from the appreciating rupee, the buy call on Infosys displayed the bullish outlook for the infotech sector, said Patel.
Rating agency ICRA, which debuted on the bourses Friday with a whopping listing-day gain of 142 per cent, galloped further to Rs 957. This was an unusual post-IPO phenomenon, said Ashok Kumar of Louts Knowlwealth. “The valuation at this level is ahead of fundamentals and is also higher than the other rating agency listed, CRISIL,” Kumar said.