Nifty reclaims 8150, market gains for fifth consecutive session

by Prateek Mazumder on Market Analysis, Market Wrap

The rally continued today in Indian markets as the market rallied today for the fifth consecutive day. The market benchmarks opened with a huge positive gap of on strong global cues and continued the up trend on most part of the trading session. Although there was a minor profit booking seen in the afternoon, Nifty marked a smart recovery today to end the day at 8150.

Amongst the prominent sectors, the outlook was mixed. The sectors which gained the most are CNX FMCG(+2.58%), CNX METAL(+1.64%) and CNX PHARMA(+0.96%). The sectors which lost the most today are CNX IT(-0.93%), CNX MEDIA(-0.77%) and BANK NIFTY(-0.39%). The market breadth was flat today with 25 Advances and 25 Declines in Nifty.
Among the prominent stocks, The stocks which gained the most today are TATAMOTORS (+5.74%), ITC (+4.13%), CIPLA (+3.81%), COALINDIA (+3.71%) and GAIL (+3.65%). The stocks which lost the most today are BHEL (-3.16%), INFY (-2.09%), ULTRACEMCO (-1.70%), ACC (-1.58%) and NTPC (-1.57%)


HUL rallies in today’s trade- Hindustan Unilever gained 2% in today’s trade after Macquarie upgraded it to outperform from a neutral rating. The brokerage house kept its target unchanged at Rs 900, implying an 8% upside from the current price level. Despite consumer demand continues to remain slow, especially in the rural markets, HUL management reaffirmed its guidance of maintaining competitive volume growth and modest improvement in margins. Company’s management believes that rural demand is weak due to lower wage inflation and muted growth in agri-income. Macquarie continues to remain positive on HUL’s medium-term growth potential. “While the near-term demand remains sluggish, it believes the recent stock price correction (20 percent decline in the last six months) provides a good buying opportunity from a mid-to long-term perspective,” it says. However, the brokerage house has lowered its FY15-18E earnings by 5% on lower sales growth expectation.
Maruti’s share falling since last 4 trading session- Maruti Suzuki India  have experienced some volatility after a Jefferies report showed concerns over its capital allocation policy, uncertainty with respect to its Gujarat plant and a lacklustre launch of premium vehicles such as S Cross.The brokerage slashed its price target by 19% from Rs 4,876 per share to Rs 3,952. The company’s shares have fallen from Rs 4,740 to Rs 4,357 in four trading days, as markets further digested a weak August sales report. Opinion, though, is divided on the street as some analysts say the company faces headwinds in the near term but many believe its long-term outlook is strong as ever. “The company faces three particular challenges in the near term,” Deepak Shenoy of Capital Mind told CNBC-TV18. “Weak sales compounded by a slowdown in bank auto loans. Challenges in the low-end segment with new feature-packed segments.

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