Sensex recovers as ITC, HDFC rise; realty shares in limelight
The benchmark Sensex on Wednesday recovered by 48 points to end at 28,386.19 on smart rise in bluechips, including ITC and HDFC, coupled with a spurt in realty shares, led by DLF, after government hiked floor area ratio in Delhi.business Updated: Nov 26, 2014 17:45 IST
The benchmark Sensex on Wednesday recovered by 48 points to end at 28,386.19 on smart rise in bluechips, including ITC and HDFC, coupled with a spurt in realty shares, led by DLF, after government hiked floor area ratio in Delhi.
Others factors that supported markets were expectations of a cut in interest rates next month and short-covering activity ahead of expiry of monthly derivatives, traders said.
Realty counters were at the forefront after Floor Area Ratio in Delhi in respect of plots of 750–1000 sq mt size were enhanced from the present 150% to 200% while the same has been increased from 120% to 200% for plots of 1000 sq mt and above.
As a result, sectoral S&P BSE Realty index was the top gainer with a rise of 4.03%. Anant Raj, DLF and Unitech shares notched up gains of between 4-10%. Power, Metal and FMCG counters also attracted buying. ITC rebounded by over 2% on Wednesday, after dropping 5% on Tuesday on worries over cigarette norms.
HDFC, Sesa Sterlite, M&M, GAIL, BHEL, Hero Moto and Hindalco jumped. Fall in ICICI Bank, Bharti Airtel and RIL shares, however, restricted the Sensex's rise.
The BSE 30-share Sensex moved in a range of 28,470.15 and 28,261.31 before closing at 28,386.19, showing a rise of 48.14 points or 0.17%. On Tuesday, it had slipped 161.49 points or 0.57%. "Led by the Delhi government's decision to increase the Delhi city's floor area ratio by 200%, most realty sector stocks saw huge surge in buying activity," said Rakesh Goyal, senior vice president, Bonanza Portfolio.
The broad-based 50-issue CNX Nifty of the NSE also recovered 12.65 points, or 0.15%, to 8,475.75. Second-line shares were in the limelight on good buying from retail investors. The BSE-Midcap and BSE-Smallcap indices closed up by 0.62% and 1.12% respectively.