Benchmark indices extended their rally to the third day. In the last 14 sessions, they have closed in the green in 13 instances, thanks largely to a rally in IT and pharma stocks. However, with the one-way rally, volatility has also surged.
The 30-share pack Sensex climbed 112.77 points or 0.28 per cent to 40,544.37, paring about 200 points from the day’s high. Its broader peer NSE Nifty advanced 23.75 points or 0.20 per cent to 11,896.80.
“The optimism of the market is limited to blue-chips and sectors like IT & Banks. To improve the breadth of the market in the future, a lot will depend on the trend of Q2 result, which has a very positive view. This buoyancy was also supported by global trend which faded due to lack of consensus in the US to sign a fiscal package before the election and no hope of talks between EU-UK,” said Vinod Nair, Head Of Research at Geojit Financial Services.
Market at a glance:
- Equitas SFB IPO subscribed 34 per cent led by retail applications
- Britannia drops about 6% after September quarter earnings
- L&T adds 2% on emerging as lowest bidder for Rs 24,985 cr contract
- India VIX, indicator of volatility in the market, rises 4%
- Nifty Realty top sectoral gainer, gains about 4%
- 111 stocks hit 52-week highs: SRF, PI Industries, ACC, Tata Comm, JSW Steel and Asian Paints among top names
Among the bluechip names, HCL Tech was the top gainer, up 4.29 per cent at Rs 881. Tech Mahindra, Asian Paints, Bharti Airtel, HDFC Bank, JSW Steel, Larsen & Toubro, TCS and Wipro rose 1-3 per cent.
Britannia Industries was the biggest loser among the Nifty constituents, dropping 5.82 per cent to Rs 3,552.90. ONGC, GAIL, Indian Oil, UPL, Power Grid, Hindalco, NTPC and Reliance Industries were among other top losers.
Broader market indices outperformed their headline peers as Nifty Smallcap edged 0.38 per cent higher while Nifty Midcap rose 0.63 per cent. Nifty 500, the broadest index on NSE advanced 0.24 per cent.
Mindtree, Zee Entertainment Enterprises, Godrej Properties, Ircon International, Delta Corps and Balrampur Chini Mills were among the top gainers from the mid and smallcap indices, rising 3-7 per cent.
On the other hand, ICICI Securities, V-Guard, Bata India, Rallis India, Alok Industries and Persistent Systems were among the top losers from the broader market space, slipping in the range of 1-4 per cent.
“Despite the positive bias, we might continue to see volatile swings. Hence, traders should prefer hedged positions and maintain their focus on the selection of stocks.”
In the sectoral space, Nifty Realty was the biggest gainer, up 3.94 per cent while Nifty Media and NIfty IT gained 1.96 per cent and 1.41 per cent, respectively. Nifty PSU Bank was the biggest loser, down 1.42 per cent.
Market breadth was neutral as 1,373 stocks ended in the green, while 1,316 names settled with cuts. As many as 111 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 61 names hit 52-week lows, mostly from the microcap space. About 270 stocks hit upper circuit limits and 231 lower circuit limits.
European markets were trading mixed with Germany’s DAX down 0.33 per cent while London and Paris traded with gains. Asian markets closed mixed. Hong Kong, South Korea, Thailand and China registered gains while Indonesia, Taiwan, Singapore and Japan settled with losses.
Let’s prepare for tomorrow:
- Q2 earnings: Bajaj Finserv, Bajaj Finance, UltraTech Cements, GMM Pfaudler, Colgate Palmolive, JK Tyre and KPIT Tech among major names that will come out with their numbers.
- IPO Watch: Investors will also track the market response to Equitas SFB on the second day of the IPO period.
- US Stimulus: Marketmen will also track the developments on US economic aid, which if agreed upon, may give massive lift to the market.