Buzzing Stocks: Amid retracements from highs, theme runs full steam on street

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By S Jha

New Delhi, June 19: While traders have been counting on an extended bullish run of the indices, retracements played out in the early hours of the trade on Monday. Nifty was rejected by the resistance zone of 18880-900 to trade lower with a cut of over 50 points, while the financials were dragging the markets lower.

Bank Nifty was trading with a cut of over 300 points. Kotak Mahindra Bank, Axis Bank, and ICICI Bank were trading with cuts of over one point to push the Bank Nifty lower.

Yet, the market was buzzing with trending stocks, as the emerging themes played out on the street. Among the heavyweights, Larsen and Toubro was trending higher in the early hours of the trade, as the scrip gained over two per cent. L&T has crossed its all-time high, and chartists are claiming that the construction major with diverse interests including in the defence goods productions has momentum going in its favour.

The defence theme continues to be played out on the bourses, as besides L&T a few more scrips from the sector were trading higher. Mazgaon Dockyard, a PSU defence company, was also trading with gains of over three per cent.

Data Patterns, a private sector defence company engaged in diverse areas, from radar to satellite, was trending higher with gains of over four per cent. The scrip is trading at its all-time high price.

Paras Defence was also higher by five per cent. Avantel, which is engaged in satellite communication and other defence gears, further extended its gain. Bharat Dynamics, another defence PSU, was trading higher by over three per cent.

On the trail of Prime Minister Narendra Modi’s US visit, beginning Tuesday, there is a build up of anticipation of India gaining strongly in the defence sector with transfer of key technology, as well as joint productions of the defence goods.

The railway stocks were also buzzing on the back of Vande Bharat train theme. Titagarh Wagons which as part of consortium bagged a fresh order of sleeper Vande Bharat trains was trading with gains of over five per cent. BHEL was also higher in the trade in the early hours on Monday. IRCON and Rail Vikas Nigam Limited were also trading higher, tracking buzz in the railways sector around the rollout of the branded trains and the consequent investment in the rail infrastructure.