Mumbai, March 4 (IANS) Nifty traded in the positive territory throughout Monday, touching new highs and closing with gains of 27 points at 22,405. Sector-wise it was a mixed bag with buying seen at oil & gas, financials, and private banking, sais Siddhartha Khemka, Head of Retail Research at Motilal Oswal (NS:MOFS) Financial Services.
“Sectors like capital goods, infra stocks, and power were in momentum as the government is likely to unveil infrastructure projects worth over Rs 1 lakh crore in the next few days, with the majority of the projects related to the power sector. Also, domestic power demand grew 8 per cent in February to a record high to 128 billion units - supporting the momentum in power stocks," he said.
Upstream oil companies are likely to be in momentum amid rising crude oil prices as OPEC extended production cuts for another four months, he added.
The primary market will be in focus this week with three IPOs open for subscription and three more to debut on the stock exchanges. Also, global ratings agency Moody's raised India's GDP growth projection for the calendar year to 6.8 per cent vs 6.1 per cent earlier, Khemka said.
“Given the positive domestic sentiments, we expect the market momentum to continue over the next few days with Nifty likely to move towards 22,500 zones. However, the broader market could remain under pressure given the profit booking and adverse advance-decline ratio. Hence, we suggest the traders be very selective in mid/smallcaps," Khemka said.
--IANS
san/arm