It was indeed a terrific Tuesday for Indian share markets that started the day on a muted note only to pick up momentum in the second half, bringing the benchmark indices within touching distance of a four-month high.
The S&P BSE Sensex rallied 519 points to close at 35,430 while the Nifty50 witnessed selling pressure near 10,500 to end the day 159 points higher at 10,471.
Positive global cues and talk of de-engagement along the Line of Actual Control helped the bulls put up a strong show. World stocks rallied on positive global economic data and assurance from President Donald Trump that the US’ trade deal with China remained “fully intact”.
“The Indian indices traded positive, in sync with global indices, seemingly on the back of continued liquidity flows into the markets. The gains were spread across sectors and market caps, with even the IT index overcoming its losses, due to the proposed change in H-1B visa rules,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Markets were also optimistic on the back of news of a de-escalation in border hostilities and the pace of Covid-19 recoveries increasing, in spite of the new virus infections. Investors advised to remain cautious and keep booking profits.”
Sectorally, action was seen in the power, capital goods, realty, banks, and FMCG stocks while marginal profit-taking was seen in the energy space.
The broader market were in line with the benchmarks. The S&P BSE Midcap index rose 1.6 percent while the S&P BSE Smallcap index gained 1.8 percent.
Top Nifty gainers included NTPC, IndusInd Bank, Bajaj Finance and L&T.
Top Nifty losers included like Maruti Suzuki India, Bharti Airtel and RIL.
Stocks & Sectors
Sectorally, the S&P BSE power index was up 4.2 percent. The S&P BSE capital goods index rose 4.06 percent and the S&P BSE realty index gained 3.05 percent.
A volume spike of more than 100 percent was seen in stocks like Jubilant FoodWorks, HDFC Life, SRF, BHEL, SAIL, Adani Enterprises and JustDial.
Long Buildup was seen in stocks like Adani Enterprises, Marico, Colgate Palmolive, and HCL Technologies.
Short Buildup was seen in stocks like PFC, Torrent Pharma and RIL.
More than 100 stocks on the BSE hit a fresh 52-week high. These included Dixon Technologies, Ruchi Soya, Vaibhav Global, Aarti Drugs and Aurobindo Pharma.
Stocks in news
Larsen & Toubro share price jumped over 6 percent after the company’s transportation infrastructure business secured an EPC contract to construct Packages 11 and 22 of the Delhi-Vadodara Expressway.
Info Edge (India) stock jumped over 7 percent after the board approved raising of funds through issue of equity shares of the face value of Rs 10 each by way of Qualified Institutions Placement (QIP) to eligible qualified institutional buyers for an amount not exceeding Rs 1,875 crore.
Skipper share price surged 20 percent after the company’s net profit jumped 58.42 percent from the previous year to Rs 28.12 crore in the March quarter.
Kolte-Patil Developers stock price jumped over 5 percent even after the company posted a net loss of Rs 16.5 crore in the quarter ended March 2020 against a profit of Rs 40.1 crore in a year-ago period.
Power Grid Corporation of India share price was up almost 4 percent after CLSA upgraded the stock to “buy” and raised the target to Rs 205 from Rs 190 per share.
Indian Bank share price jumped 7 percent after the lender reported a loss before tax of Rs 188.60 crore for the quarter ended March 31, 2020 as against a loss of Rs 393.42 crore during the same period last year.
DB Corp stock price was down 3 percent after the company reported a 55.83 percent decline in consolidated net profit at Rs 24.05 crore for the March quarter due to the impact of COVID-19.
The Nifty closed in the green for the fourth day in a row and formed a bullish candle on the daily charts and is now headed for 10500 levels.
The Nifty has been making higher lows for the last seven sessions and has rallied almost 1,000 points from its swing low of 9,544 to 10,484 levels.
As long as it doesn’t negate the formation of higher lows, buying interest could continue in the market in line with the positive momentum in global indices.
The Nifty has to continue to hold above 10,333 to extend its move towards 10,600-10,650 zone, while support is now shifting to 10,250 and 10,180 levels, says Chandan Taparia of Motilal Oswal Financial Services Limited.
India VIX fell by 3.68 percent from 30.46 to 29.34 and overall consolidating volatility is giving comfort to the bulls with a higher market base.
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