Bombay Stock Exchange
By S Jha
New Delhi, January 25: The indices were gripped by extreme volatility on Thursday as the day marked the weekly, as well as the monthly expiry of the option contracts. In one of the most eventful volatile day of trading, the bourses witnessed contrasting tales of swings of fortunes on the street.
The indices opened in an undecisive mode to surrender to the bears who pounced on the banking heavyweights. The short selling spree extended on the banking counters as the heavyweight HDFC Bank gave away all gains made a day before to go sinking once more. With a cut of more than two per cent and the likes of the Axis Bank and the SBI giving company in the bear hug, the Bank Nifty was battered by the bears as the index slumped by over 600 points during the day.
With the banking stocks constituting string weightages on Nifty and Sensex, the overall market seemed deep in the red by the afternoon session. But the forces of the monthly expiry, as per market participants, came in the play at the late session as the Bank Nifty erased almost all the losses. The fightback on the street was also apparently helped by the fact that the Reserve Bank of India had given the permission to the LIC to buy 9.99 per cent stakes in the HDFC Bank. The HDFC Bank ADR on the US bourses was ip by over three per cent in the afternoon session. This may possibly send the Bank Nifty soaring in the Monday session as the HDFC bank alone has commanding weightage on the index.
Even while the indices give looks of being badly battered by the bears, the broader market is basking in the glory of a healthy monsoon of money raining on the investors. The small caps are flying on the street. The firms in the powers sector have become hot potatoes.
The likes of Silcher Technology, Transformer and Rectifiers, and others in the businesses of manufacturing power transformers are flying beyond the reach of the investors. The index heavyweight NTPC was also firm during the session. The likes of SJVNL and NHPC also gained on the street while the solar scrips stepped up their momentum
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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