A stellar rally in FMCG stocks, particularly in HUL, buoyed by parent Unilever's open offer to raise stake in its Indian subsidiary, helped the benchmark CNX Nifty to close higher by another 26 points on the National Stock Exchange (NSE) Tuesday.
Mumbai: A stellar rally in FMCG stocks, particularly in HUL, buoyed by parent Unilever's open offer to raise stake in its Indian subsidiary, helped the benchmark CNX Nifty to close higher by another 26 points on the National Stock Exchange (NSE) Tuesday.
The Anglo-Dutch consumer goods giant's decision to acquire 22.52 per cent through an open offer in HUL for Rs 600 a share lifted the sentiments of the entire FMCG sector. The sectoral index zoomed by a massive 700 points. The announcement comes a day after HUL announced a better than expected 15 per cent increase in Q4 net profit.
Market opened firm, powered by the overnight Unilever decision amid strong global sentiment, and the 50-share index touched one-month high in early trade.
However, the rally suddenly lost steam and trading turned volatile following profit-taking at higher levels. Market surrendered gains and traded in negative zone with some investors looking reluctant to take fresh positions ahead of tomorrow's trading holiday and Friday's RBI policy meet.
But overcoming the volatility market rebounded smartly towards the end and closed with good gains.
Globally, an overnight record close in Wall Street bolstered market sentiment across Asia and Europe.
The Nifty fluctuated widely between a high of 5,962.30 and a low of 5,867.80 before concluding at 5,930.20, a gain of 26.10 points, or 0.44 per cent, over the last close.
Healthcare, auto, technology and metal related counters, too, attracted good buying interest.
HUL touched a lifetime high in early trade and ended at Rs 583.80, up a hefty 17.38 per cent. Other top movers included Sesa Goa, HCL Tech, M&M, NMDC, Lupin, Coal India, Ambuja Cement, Cairn and Dr Reddy's.
JP Associates, IDFC, IndusInd Bank, PNB, HDFC, DLF, HDFC Bank, Hindalco, Reliance Infra and Grasim were among the top Nifty losers.
Turnover in the cash segment shot up to Rs 12,457.36 crore from Rs 9,598.04 crore on Monday. A total of 6,466.14 lakh shares changed hands in 61,52,779 trades. Market capitalisation stood at Rs 64,90,373 crore.