Benchmark indices hit new highs

Key benchmark indices touched all-time highs on the back of positive results and expectations of reform action post the cabinet rejig in New Delhi.

The S&P BSE Sensex touched a new all-time high of 28027.96, while the National Stock Exchange"s CNX Niftyindex touched 8383.04 in early trade Stock Market Trading Tips

Profit-booking later saw the Sensex close at 27,874.73. It closed the day with gains of 6.1 points or 0.02%. The National Stock Exchange's CNX Nifty closed at 8,344.25.

"The positive news-flow from Delhi and the fact that India is in a global sweet spot with flows likely to continue on account of liquidity programs from Japan and Europe helped "" said Piyush Garg, chief investment officer, ICICI Securities.

"Results have been good and there are expectations that the expansion of ministries signal that reforms will now come faster," said Jitendra Panda, managing director and chief executive of Peerless Securities.

Securities worth Rs.2.42 lakh crore changed hands on Monday, including notional derivative turnover of Rs.2.21 lakh crore Commodity Trading tips

The sectoral index tracking Fast Moving Consumer Goods (FMCG) companies was the biggest gainer of the day, up 2.81%. Sectoral indices tracking consumer durables, power and healthcare stocks were up between 0.4% to one% on the back of positive results and some reallocation towards defensive stocks, said market experts.

Sectoral indices for Oil and Gas stocks and Capital Goods were down 1.29% and 1.01% respectively on profit booking. Overall, there were marginally more losers than gainers amongst the 3,125 stocks which traded on the BSE on Monday. A total of 1479 ended with gains, while 1533 ended with losses Intraday Trading Tips

Foreign investors were net buyers by Rs.355.3 crore on Monday, according to provisional exchange data. Domestic institutions were net sellers by Rs.314.93 crore.

Interestingly, the India VIX index spiked in the afternoon to reach 17.21, before closing at 13.93. The index tracks market expectations of volatility in the days ahead Nifty Trading Tips

"The market touched an all-time high and then briefly went into negative territory. These changes in direction resulted in the spike in VIX," said Panda.

Garg of ICICI Securities said that the market will closely watch the winter session of Parliament. If there are positive reform triggers then the market could see upside, but disappointment could result in significantly higher downside Free Share Tips