Bulls dominate Dalal Street for 10th straight day; banks, IT stocks in demand

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Bulls dominate Dalal Street for 10th straight day; banks, IT stocks in demand


NEW DELHI: Metal stocks took a backseat but heavy demand for banking names salvaged the day as benchmark indices climbed on Tuesday to fresh highs, recovering morning losses amid weak global cues.

Non-stop foreign flows have kept the market buoyant in the last couple of months but with every rise, volatility indicator is also rising, reflecting nervousness among investors who have become cautious of stretched valuations.

The 30-share pack Sensex added 260.98 points, or 0.54 per cent, to 48,437.78. The index has now risen for the 10th straight session now. NSE flagship Nifty advanced 66.60 points, or 0.47 per cent, to 14,199.50.

“Based on the historical standards of valuation, today, equities are at rich level. But these levels are easily extended or cannot be comparable due to one-time economic euphoria from early vaccination, high double-digit earnings growth and high liquidity in the market. The ongoing Indian rally is supported by the anticipation of Q3 result, on earnings front we expect green shoots due to uptrend in economic activity and record collections in GST,” said Vinod Nair, Head of Research at Geojit Financial Services

Market at a glance:

  • Axis Bank surges over 6%, emerges as the top bluechip gainer
  • Metal stocks see profit booking after massive buying on Monday
  • India VIX gains over 2% to climb above 20-level
  • KNR Constructions hits 52-week high on highway project win
  • HDFC rises 3% as individual loan disbursements up 26% in Q3

Among the bluechip names, Axis Bank was the top gainer, rising 6.32 per cent. HDFC, IndusInd Bank, HDFC Life Insurance, Wipro, TCS, Asian Paints, Titan and GAIL were other major gainers.

“We reiterate our positive yet cautious stance on markets and suggest sticking to fundamentally sound stocks”

— Ajit Mishra, Religare Broking

Losers among Nifty constituents were led by ONGC that slipped 1.96 per cent. JSW Steel, Hindalco, Tata Steel, Bajaj Finance, Coal India, NTPC, M&M and Reliance Industries were others that ended in the red.

Broader market indices also registered gains, outperforming their larger peers. Nifty Smallcap added 0.60 per cent and Nifty Midcap rose 0.68 per cent. Nifty 500, the broadest index on NSE, climbed 0.64 per cent.

Polycab India, RBL Bank, L&T Financial Holdings, NBCC, Thyrocare Technologies and Sobha were top gainers from mid and smallcap indices, climbing in the range of 4-8 per cent.

Indian Hotels, SAIL, National Aluminium Company, India Energy Exchange, Indiabulls Real Estate and IRB Infra were major losers from broader market space, falling in the range of 1-4 per cent.

Sectoral matrix was mixed on NSE. Nifty IT was the top gainer, up 2.62 per cent, followed by 1.93 per cent gain in Nifty Private Bank. Nifty Financial Service and Nifty Bank also gained more than 1 per cent each. Nifty Metal, Nifty Auto and Nifty Realty closed in the red.

Market breadth was in favour of gainers as 1,781 stocks ended in the green, while 1,288 names settled with cuts. As many as 430 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 39 names hit 52-week lows, mostly from the microcap space. About 530 stocks hit upper circuit limits and 158 lower circuit limits.

European markets were also trading mixed. London-based FTSE was up 0.25 per cent, while Paris and Frankfurt dipped 0.20 per cent and 0.28 per cent, respectively. In Asia, barring Japan that ended in the red, all markets closed with gains. Thailand was the top gainer, up 2.62 per cent.





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