A day after the Sensex closed above the 17,000 mark for the first time in over two years and the calling off of the Bharti Airtel-MTN deal, the markets gained marginally with Bharti being the major driver as investors shook off months of speculation and uncertainty.
The Sensex was up marginally to close with a gain of 0.05%. It closed at 17134.55.
TECk was the top gainer of the day with a rise of 1.45%. IT, Banking and FMCG also went up. PSU and Metal indices showed a marginal rise.
Health care was the top loser of the day, going down by 1.30%.Auto, Consumer Durables and Oil and Gas also lost close to 1% each.
Bharti Airtel was the top gainer of the day among the fifty stocks that make up the Nifty. The scrip was up 3.88% to close at Rs.435.00. Bharti Airtel’s deal with MTN finally collapsed on Thursday as the South African government refused permission to allow the merger between the companies citing issues with its current structure.Since the announcement of the deal, Bharti's stock had underperformed compared to the Sensex by 20% according to a research report by Ambit Capital.
“The concerns were on account of rumours about Bharti sweetening the deal resulting in higher cash outflow and earnings dilution compared to standalone entity. In the event of the deal, debt on Bharti's books would have gone up significantly resulting in higher interest burden. All these factors have kept the Bharti's stock price under pressure,” said the report.
Ambuja Cement and Reliance Communications were up 3.41% and 2.57%.Axis Bank and ICICI Bank were the other gainers of the day.
Grasim was down 3.62% to close at Rs. 2673.35. HDFC, Maruti, Cipla and BPCL all gained 3%.
In total there were 24 advances among the Nifty pack.
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