Bulls, bears wrestle for control in stock markets
By S Jha
New Delhi, October 20: Bears sought to stage a comeback on the Dalal Street on Thursday by riding the Bank Nifty, but the bulls rode the IT pack for an intense battle. By the end of the trading session, the bulls edged up after the bears lost the steam with a steady rise in the IT pack, as rupee also staged a recovery in the late session.
The bears took the full control of the stock markets on the day of the weekly expiry after the Bank Nifty lost the steam with none of its constituent coming to the rescue amid relentless selling pressure. The broader market also favoured the declines, as the profit booking ahead of the curtailed next week on the bourses due to Diwali set the mood for the Thursday session.
The IT pack led by HCL technology, Tech Mahindra, Infosys and even TCS gave stability to the stock markets, helping the Nifty to shrug off the bearish sentiments to end the session in the green. HC Technology, which has been trending after giving a good set of numbers in the quarterly result, smartly gained to end the session on the high at Rs 1017. The scrip has been trending up from the Rs 950 level.
The IT pack has been the most bearish, with invariably almost all of them having lost 50 per cent of their gains in the recent months. The midcap and the smallcap among the IT have been bashed up, with excessive losses. The likes of Birla Soft, Mindtree, Persistent Systems have been battered in the recent downturn. But the rupee depreciation has brought a new lease of life for the IT companies, as they stand to gain from the dollar earnings.
The FMCG counter also trended strong, with ITC, which is the star performer of 2022, gaining strong on the bourses on Thursday. The global market also remained subdued, with Dow Jones in the afternoon session also reporting profit booking
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