Axis Bank lifts market sentiments; bourses turn bullish
By S Jha
New Delhi, December 8: Shrugging off bearish sentiments of the past few days, which set in the broader market after the indices scaled the new peaks, the stock markets on Thursday resumed upward journey, while taking positive cues from the resounding victory of the Bharatiya Janata Party in the Gujarat Assembly elections. Dow Jones, which was also sideways for a few days, gained over one per cent in the afternoon trade.
The foreign institutional investors remained bearish selling another Rs 1100 crores in the India equity markets. The FIIs had been selling for the past few days. Their domestic counterparts have been buying into the Indian equity markets, reflecting the deepening participation of the retail investors. The DIIs bought over Rs 700 crores in the equity market in the Thursday session.
The BJP defeats in the MCD polls and the Himachal Pradesh Assembly elections weighed on the stock markets, with Sensex and Nifty staying indecisive about the political trend, but took off ultimately after finding that the saffron outfit has been holding on to its vote share in the hilly state and the national capital also.
Axis Bank, which will be raising capital from the market, set the bullish tone to the Bank Nifty, which took off on a strong note even while Nifty remained under pressure. Axis Bank, which had also been trending in the early part of last month, finally broke out of a tight range to touch the level of Rs 940, which is seen to be a bullish sign by the chartists. Axis Bank was given a strong company by Indusind Bank, which also gained strongly.
Jindal Worldwide, which has been trending for the past few days, went past Rs 400 level. The textile company has acquired an electric vehicle manufacturing company. It is planning to launch two electric vehicles, which has sent the scrip buzzing. It has significantly gained in the last 18 months, rising from the level of Rs 70 to go past Rs 400 on Thursday, getting a tag of a multibagger.
The IT space, which went silent in the last few days after a strong but short rally, showed signs of movement, with Infosys moving marginally up. The metal space again showed strength, with Hindalco leading the pack. Sun Pharma came under pressure amid report of an adverse findings by the US regulator.
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