Sensex rise today: Private banks, RIL give Sensex 478-point lift …

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Market breadth was heavily tilted in favour of gainers as 1,875 stocks closed with gains and 915 names ended the day in the red.

Synopsis

A Bank of America survey of fund managers that showed investors are their “most bullish” on financial markets since February, when world stocks hit a record high, also lifted the mood on Dalal Street.

By

Shubham Raj

,

ETMarkets.com

Last Updated: Aug 18, 2020, 05:43 PM IST

NEW DELHI: Indian investors shrugged off escalating geopolitical tensions and projections of a sharp contraction in the GDP and binged on bluechip heavyweights on Tuesday taking indices higher.

A Bank of America survey of fund managers that showed investors are their “most bullish” on financial markets since February, when world stocks hit a record high, also lifted the mood on Dalal Street.

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The 30-share pack

Sensex

surged 478 points to 38,528 thanks to heavy buying in private banks and Reliance Industries. Consumer discretionary stocks were also in demand, signifying market’s bullish view on economy.

Broader 50-share Nifty rose 138 points to 11,385, five-and-a-half month high. India VIX, the measure of fear and volatility in the market, drifted further lower to 20.42, a drop of 4.16 per cent against previous close.

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“After opening on a flat note, the benchmark inched higher, tracking healthy buying in select heavyweights, however, the actual momentum was triggered by banking and financial stocks in the latter half,” said Ajit Mishra, VP – Research, Religare Broking.


With liquidity high and expectations overcoming concerns about valuations, any consolidation in the markets have been bought into and this trend is expected to continue.

-Vinod Nair, Geojit Financial Services

Among Nifty stocks, Grasim Industries was the biggest gainer, up 6.50 per cent followed by its subsidiary

UltraTech Cement

that advanced 3.33 per cent. JSW Steel, Kotak Mahindra Bank and Zee Entertainment, which will come out with its Q1 numbers later in the day, gained about 3 per cent each.

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On the other hand, BPCL was the biggest loser among them, down 1.25 per cent. Tech Mahindra, Cipla, HCL Technologies, GAIL, IndianOil and Bajaj Auto also closed the day with marginal cuts.

Top 5 Nifty gainers & losers

Broader markets continued its exuberance, closing in line with headline peers. Nifty Smallcap advanced 1.52 per cent and Nifty Midcap 1.24 per cent to 16,660. Analysts see plenty of upside in broader market indices.

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“Nifty Midcap index should move towards 21,800 level. It should cross its all-time high with ease,” said Amit Jeswani of Stallion Asset who runs a midcap-focused PMS fund.

Among the biggest gainers in the broader space were Sobha, Sunteck Realty, Indiabulls Real Estate, Ashok Leyland, Cholamandalam Finance and PNB Housing Finance, rising in the range of 7-10 per cent.

Top losers included Lux Industries, Ashoka Buildcon, Wockhardt Pharma, Emami, Edelweiss Financial Services and JSW Energy that fell up to 4 per cent in Tuesday’s trade.

Nifty Realty was the biggest sectoral gainer, surging 4.04 per cent thanks to renewed investor interest in the sector. Nifty Private Bank, Nifty Bank and Nifty Media were other indices gaining more than 2 per cent. Nifty Pharma saw profit booking as the index slipped 0.12 per cent.

Market breadth was heavily tilted in favour of gainers as 1,875 stocks closed with gains and 915 names ended the day in the red. Nearly 180 stocks hit their 52-week highs, mostly from small and microcap space. Nearly 425 names hit the upper circuit limit and about 195 lower.

Asian shares closed mixed as the lift from Wall Street’s tech-fueled rally was checked by investors’ fresh concerns about Sino-U.S. tensions.European shares pared early losses as travel stocks rebounded, but rising US-China tensions and underwhelming earnings report from mining group BHP weighed on sentiment, said Deepak Jasani, Head Retail Research, HDFC Securities.

Let’s prepare for tomorrow

  • AGR issue: The hearing in the case is going on and any adverse comment by Supreme Court may have a bearing on telecom stocks on Wednesday.
  • Q1 earnings: Ruchi Soya, Muthoot Finance, Tips Industries and V2 Retail amsong a few major names that will come out with their earnings on Wednesday.
  • Global cues: Investors will also track news on US stimulus packages and any fresh developments on US-China tussle.

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