Sensex jumps 260 points, Nifty ends above 10,750; Reliance Industries hits record high
Vinod Nair, Head of Research, Geojit Financial Services
Despite trade tensions the market traded in a positive note by snapping two days of down trend on the back of positive global peers. Rupee gained as oil price remained in the recent low ahead of OPEC meeting on Friday. Bank nifty outperformed due to a slide in 10 yr yield after RBI’s announcement of open market purchase. The continuing uncertainty on trade tariff is likely to act as a cap in the gain.
RIL touches fresh high
Reliance Industries (RIL) hit a fresh high of Rs 1021.75, gaining over 2 per cent on the BSE. In past three weeks, RIL has outperformed the market by surging over 10 per cent as compared to 4 per cent surge in Sensex. Thus far in FY19, the stock rallied 14 per cent against 8 per cent spurt in Sensex.
Shares of Jet Airways, IndiGo and SpiceJet tanked up to 6 per cent after domestic air passenger traffic recorded lowest growth in last seven months in May on account of rising fare due to a hike in crude oil prices. InterGlobe Aviation, which runs the low-cost airline IndiGo, slipped as much as 5.87 per cent to Rs 1,156, Jet Airways dipped 2.60 per cent to Rs 378.10, while SpiceJet tanked 1.71 per cent to Rs 109.15 on the BSE.
Cipla share price rallied over 3 per cent after the drug major received approval from the US health regulator to market Efavirenz tablets. These tablets are used to treat HIV-1 infections in adults. Reacting to the news, the stock gained as much as 3.27 per cent to Rs 622 on the BSE.
Man Industries (Buy)
Target: Rs 121
Stoploss: Rs 114
- Promoters bought shares in open market
- Promoters bought 5207 shares on June 18
The benchmark indices fell for a second straight session on Tuesday, as fears of a global trade war intensified after US President Donald Trump threatened to impose a 10 per cent tariff on $200 billion worth of Chinese goods. The broader Nifty ended 0.83 per cent lower at 10,710.45, while the benchmark BSE Sensex closed 0.74 per cent lower at 35,286.74. The BSE Midcap and the BSE Smallcap indices shed 1 per cent and 1.3 per cent, respectively. Market breadth, indicating the overall health of the market, remained negative. On the BSE, 1,923 stocks declined, 703 stocks rallied, while 150 stocks remained unchanged.