Defence Scrips Sprint in Extended Bull Run in Stock Market
Stock Market & BSE Bull ! (Image credit BSE India)
Nifty Faces Hurdle at 23k Level While DIIs Outclass FIIs
By S Jha
New Delhi, March 19: Nifty on Wednesday extended gains to close the day at 22907. Bank Nifty sprinted with an all-round index gain. The 50-share index faces short-term hurdle above 23k level.
On second consecutive days, bulls held grounds in a broader market rally. The secular sectoral rally was seen on the street.
The domestic institutional investors continue to lap up stocks. The foreign institutional investors had turned net buyers yesterday. But the FIIs sold on Wednesday.
Defence scrips were the showstopper of the day. The shipyard scrips vaulted with hectic buying.
Shares of Garden Reach Shipyards hit the 20 per cent circuit. Shares of Mazagaon Dock Shipyard were in high demands. Shares of Cochin Shipyards too joined the party.
Shares of private defence stocks also invited buyers’ attentions. Shares of Premier Explosives gained strongly in a secular defence rally. Shares of Paras Defence too got the lift. Azad Engineering and IdeaForge Technology were major gainers on Wednesday.
The defence scrips without exception had sharply corrected from their peaks. The buying in their counters came amid Germany doubling the defence budget.
In the fallout of the US-Russia bonhomie, European nations are upping the ante in their defence budgets. With India and the European Union firming up partnership, Indian defence firms expect to grab the defence budget pie in Europe per analysts.
Shares of Shriram Transport Finance were the top gainer in the day. The scrip rose by over five per cent. Shares of Bajaj Finance also sharply rose on Wednesday.
Nifty has sharply gained over 600 points in quick span of time. The broader market rally is giving indications of risk-on among the investors.
But analysts warn that the traders may book profit ahead of the US Federal Reserve outcomes. But the global cues suit equity market rally. The Ukraine War ceasefire is seen as a major positive trigger for the equity markets.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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