Bombay Stock Exchange on Diwali evening
By S Jha
New Delhi, January 30: While investors keep a harp eye on changing sector theme by the big fund houses, the indices on Monday showed first definite signs of the bluechip firms waking up to compete with their small and midcap peers. Helped by the furious in in the bluechip scrips, Nifty vaulted by a whopping 385 points in the Monday session to close above 21700 level.
The early trends show that the indices may extend further gains amid positive global cues. The US indices closed higher in the Monday session led by a rally in the tech stock. NASDAQ closed higher in the session, which may please investors who have stakes in the Indian IT scrips as per the past trends.
Reliance Industries, which has broken out as per chartists a few days ago, rose above its 52-week high to close just a kiss away from the Rs 2900 level. It followed closely ONGC, which as per chartists had given a major breakout at about Rs 224 level a few days ago. ONGC, BPCL, ang Gail are being seen in strong momentum by the market participants. They claim that the oil and gas sector is finally attracting investors. With the oil and gas scrips commanding significant weightages on the indices, Nifty and Sensex may draw a sense of comfort in the gains being made the constituent scrips.
Larsen and Toubro has also been slowly and steadily advancing to all time high. The diversified conglomerate crossed the Rs 2700 level for the first time amid good tides in the largecap on the street. In the last six months, it has given almost 40 per cent return. The firm is trending on the back of bagging major contracts, including a Rs 10k crore plus work from the Ahmedabad-Mumbai high speed rail corridor.
After severe beatings in the last two weeks, the largecap banking stocks such as HDFC Bank, ICICI Bank, SBI, Axis Bank, and others showed signs of life on the street. The tech stocks such as HCL Technology and Tech Mahindra also gained from the march of the bluechip stocks.
The transformer stocks are not looking back. They continue to outperform the marker. Joining the extraordinary run in the likes of Shilcher Technology and Transformers and Rectifiers, Voltamp also gained strongly in in the yesterday session. Macpower CNC, also a transformers manufacturer, posted healthy numbers in the quarterly result to stay locked in the upper circuit yesterday.
(Disclaimer: This articles makes no recoomendations for buy or sell of shares of any company)
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