The BSE Sensex and NSE Nifty closed higher on Thursday led by positive global cues. Even hopes of diesel price hike after today's Presidential election aided the market as Brent crude crossed the USD 105 a barrel level again.
The market gained for the second consecutive session today. The BSE benchmark rose 93.84 points to close at 17,278.85 and the NSE benchmark was up 26.40 points at 5,242.70.
But Atul Badkar of Edelweiss Securities says that the July series will see the Nifty capped at 5,300. My sense is that there is not too much upside to go from here any which way. I think 5,320 and 5,348 is where we made the previous high in this month, and these two continue to remain strong resistances, he said.
According to him, global macro fundamentals and domestic factors will have to improve for the market to see further gains.
As hopes are building up for a diesel price hike soon after the Presidential election, Gautam Chhaochharia of UBS India feels that the government needs to hike diesel price to avoid a sovereign downgrade. According to him, the market is ignoring monsoon risks but has already factored in diesel price hike.
State-owned oil firms are currently selling diesel still at a loss of Rs 10.33 a litre. The government heavily subsidises diesel prices as the fuel powers much of the economy, especially in farming and transportation. Brent crude rose more than 20% in a month to USD 106 a barrel.
Shares of oil marketing companies like HPCL and IOC gained 1.8% and 1.4%, respectively. BPCL rose nearly 3%.
Country's second largest software services exporter Infosys topped the buying list, rising 3% while its rival TCS was up 0.4%.
Index heavyweight Reliance Industries rallied 1.7% ahead of its first quarter earnings tomorrow after market hours.
State-owned power equipment manufacturer BHEL jumped over 2% as the cabinet is likely to discuss a proposal to impose 21% duty on equipment imported for power generation today. Engineering and