Markets end record high on ECB Stimulus :: HDFC Securities

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The Indian benchmark indices closed at record high consecutively for the fourth trading session on Friday buoyed by the European Central Bank's announcement of bond-buying programme to stimulate the flagging eurozone economies. The trigger for Friday's rally was a $1.15 trillion stimulus announcement by the European Central Bank overnight. The ECB said it would buy government bonds from this March until the end of September 2016 to kick-start the stagnant eurozone economy. The size of the stimulus was higher-than-expected leading to a massive rally across the globe.

Statistics

The S&P BSE Sensex advanced 0.9% or 273 points to end the day at 29,279 and the Nifty advanced 74 points or 0.9% to shut shop at 8,896. Bucking the trend, the broader markets underperformed the benchmark indices. The BSE small-cap index closed weaker by nearly 1% at 11,366 and the small-cap index lost 0.2% to end at 10,695. Market breadth was negative, as the A/D ratio was 0.6:1 on the BSE. NSE cash turnover was Rs.10,263 crs. Vs. Rs.19,254 crs. on Thursday.

Sectoral and Stock movers

Barring Consumer Durables and PSU, all other sectoral indices ended the day in green. The top gainers were BSE Auto, Realty, Capital Goods and Power. Among BSE Sensex 30, Tata Power, Tata Motors, Bharti Airtel and Cipla were the top gainers, while the losers were GAIL, BHEL, ONGC and Dr Reddy.

Way forward

ECBs stimulus may lead to additional fund flows into emerging markets such as India, which is good news for domestic stock markets. We expect the market to continue its upmove for next few sessions. Immediate supports on Nifty are at 8,800 and 8,770 while resistance is at 8,900.