Market Movers: Asian Paints shines on oil slump; 99 stocks give buy signal

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Market Movers: Asian Paints shines on oil slump; 99 stocks give buy signal


MUMBAI: Benchmark equity indices ended a volatile session in the green, helped by strong gains seen in the European equity markets and some index heavyweights.

European markets opened with gains, tracking the strong economic data in the US and China that suggested that the two growth engines of the global economy were recovering even as Covid-19 cases were again rising in some parts of the world.

At home, investors’ appetite for risk was muted given the concerns around growth in light of renewed restrictions in major cities due to sharp rise in Covid-19 infections across the country.

For the day, the Nifty50 index ended 0.3 per cent or 45.7 points higher at 14,683.5, while the BSE Sensex closed at 49,201.4, up 42 points or 0.1 per cent.

Here are the major market movers in today’s trading session:

Asian Paints rallies as oil falters

Shares of the country’s paints manufacturer rose 4 per cent after global crude oil prices slumped 4 per cent overnight on concerns over increase in supply from Iran. The fall in crude oil price is positive for paint manufacturers as they use crude oil derivatives as raw materials.

Sobha soars on strong sales

Shares of the real estate developer jumped 18 per cent after the company reported strong sales numbers for 2020-21. The company registered record sales bookings of Rs 3,137 crore in the previous financial year despite the impact of Covid-19.

Graphite electrode makers shine

Shares of HEG and Graphite India soared 20 per cent and 10 per cent, respectively, on the perception that both will benefit from the bull market in the steel industry that started a few months ago. With steel manufacturers looking to expand capacity to cater to surging demand, demand for graphite electrodes used in steel furnaces may also rise.

Adani Ports surges on strong volumes data

Shares of the port company jumped nearly 13 per cent after it reported a 41 per cent year-on-year growth in cargo volumes in March. The company’s cargo volumes grew 11 per cent in the last financial year despite the damage caused to global trade by the pandemic.

What gave the buy signals?

As many as 99 stocks listed on the National Stock Exchange gave buy signals, including NALCO, Future Consumers, Bharat Electronics, Hindalco Industries, Petronet LNG, and Max India.

What’s ahead for the market?

Positioning in the options contracts of the Nifty50 index indicated that traders are still indecisive over the direction of the market in wake of the conflicting signals from the domestic and global economy.

“If we get past 14,950, we can go ahead and achieve 15,300. On the flip side, if we break 14,450, we can drop further to 14,200. Until either side is not taken out, we will continue to trade sideways with lackluster volumes,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.



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