Sensex sights 80k while cement consolidation theme warms street

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Nifty scales record 24000 level amid intense short covering

By S Jha

New Delhi, June 27: Sensex is a kiss away from the record 80,000 level. The 30-share index added another 568 points on Thursday in its forward march.

Nifty went for an intense short-covering in the last one hour of the trade. On the day of weekly expiry of Nifty contracts and the monthly expiry of stock options, indices witnessed the tug of war play between the call and the put writers.

Eventually, the bulls prevailed and they led the charge in the last hour of the trade. The short covering sent 50-share index, Nifty, trending along with Sensex.

Nifty created history on Thursday by breaching the record 24000 level, and also closing above the eventful mark. This has been the second fastest addition of 1000 points by Nifty.

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There are early signs of a battle of one up-manship in the cement sector. First, the Adani Group said that it would look for consolidation of the cement businesses.

The Adani Group had acquired two marquee cement brands last year – ACC and Ambuja cement. The diversified group is seeking a pivotal stake in the cement sector.

Ultratech Cement raised the bar with a stake buy in the Chennai-based India Cements. The news sent the share price of Ultratech Cement trending on Thursday.

The shares of India Cement extended gains on Thursday. Grasim also gained on the street on Thursday.

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Bank Nifty remained subdued on Thursday. The index lacked leadership. But Kotak Mahindra Bank sought to steady the banking index.

The street also showed signs of warming up to the IT sector. Investors look up to the guidance of Accenture to make decisions about buying into the Indian IT firms.

LT Mindtree led the bulls’ charge on the street. Bengaluru-based IT firm had been hammered in the last six months following poor set of numbers in the last quarterly result.

Wipro, Tech Mahindra, and Infosys also sharply gained. There are reports of a bulk deal tomorrow for HCL Technology at discounted price.

The SMS play, Route Mobile, has been trending. This firm is aggressively partnering with service providers in ticket booking businesses.

The share price of Route Mobile gained 14 per cent on Thursday. It has been trending for the past few days.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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