Market Movers: Why Adani Group stocks soared; 100 stocks give buy signal

Market Movers: Why Adani Group stocks soared; 100 stocks give buy signal

MUMBAI: Benchmark equity indices ended with hefty gains today aided by positive cues from global markets and optimism for global economic growth after the US announced a new infrastructure plan worth $2.3 trillion.

The gains in the market were led by shares of banks, metal companies and Reliance Industries. For the day, the Nifty50 index ended 1.2 per cent, or 177 points, higher at 14,867.35, while the BSE-Sensex closed at 50,029.8, up 1.1 per cent or 520.7 points.

In the broader market, the gains were more prominent as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 1.8 per cent and 2.1 per cent higher, respectively.

Here are the major movers in today’s session:

Adani Group stocks surge
Shares of Adani group companies rose up to 10 per cent in the session on expectation of foreign portfolio inflows linked to MSCI indices. Brokerage firm Edelweiss Securities expect inflows worth $700 million in Adani Total Gas, Adani Enterprises, and Adani Transmission if the three stocks are included at the next quarterly index review of MSCI.

Ashok Leyland jumps on strong sales data
Shares of the commercial vehicle manufacturer rose 4 per cent after the company reported better-than-expected sales data for March. Ashok Leyland sold 17,231 units during the previous month, which was higher than analysts’ estimate of 15,900 units.

Metals stocks on fire post Biden infra plan
Nifty Metal index soared over 5 per cent after US President Joseph Biden announced a $2.25 trillion infrastructure plan that is expected to boost demand for base metals globally. Analysts believe that the infrastructure plan could further boost international prices and also improve exports of Indian companies.

Over 150 stocks hit 52-week highs
A measure of strength in today’s market is represented by the fact that around 166 stocks managed to hit their fresh 52-week highs in the session. At the same time, another 354 stocks ended the day closer to their 52-week highs, reflecting the sheer breadth of gains in the market.

What gave buy signal?
As many as 100 stocks listed on the National Stock Exchange gave buy signal based on MACD indicators including JSW Energy, UPL, Sun Pharmaceutical Industries, NHPC and Sun TV Network.

What’s ahead for the market?
Traders bought the out-of-money call options of Nifty50 up to 15,100-strike price suggesting that they expect the index to reach that level in the coming days. In the futures segment, traders covered their short positions in the April contract of the Nifty50 as open interest in the contract fell 2.7 per cent.

“We should be able to resume the uptrend and head towards 15,300. If we resist and take a U-turn again, we will be sideways,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.

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