Sensex slides from 80k peaks with weak HDFC Bank -

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Defence & Rail stocks lead repair works for stock market

By S Jha

New Delhi, July 5: Sensex was once more down by about 200 points at midsession on Friday. Indices had seen deep cuts and high volatility on last two Fridays also.

The first three hours of the trade on Friday saw Sensex recovering by almost 300 points. Bank Nifty had also recovered 300 points by midsession on Friday.

Early in the trade, Bank Nifty had dived by over 800 points. The indices were in the red solely because of the HDFC Bank.

The banking behemoth was trading with a cut of over four cent at the midsession. Global brokerages came out with negative commentaries on the HDFC bank.

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The brokerages were negative on flat deposit rates of the HDFC bank. In contrast, the State Bank of India, and other private banks were doing better.

Ahead of the earning seasons, the brokerages are keeping hawk’s eye on the balance sheets of the big banks to gather clues about the future trajectory in their share prices. Also, the shares of the HDFC bank had sharply risen in the recent weeks.

But 37 stocks in the Nifty-50 were trading in the green. The indices were recovering from the blow given by the HDFC Bank.

Reliance Industries was carrying out the repair work for the street. Shares of the Reliance Industries were higher by more than one per cent to provide stability to the indices.

Tracking gains in the energy stocks, ONGC was also trading higher by more than four per cent. Larsen and Toubro was once more strong on the street.

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But the mid cap action was one more trending. The sector was buzzing particularly for the defence and the rail stocks.

In an anticipation of a pre-budget rally, the rail stocks gathered steam on Friday. BEML and Rail Vikas Nigam led the bulls’ charge for the rail stocks.

The shares of BEML and RVNL were trading firm with gains of 12 per cent and eight per cent respectively. The likes of IRCON, Rail Tel, IRFC, and others were also trading firm on Friday.

But the day is once more ruled by the defence stocks. The Chennai-based Data Patters during the day was higher by 14 per cent.

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Data Patterns is electronics play in the defence sector. It works closely with Bharat Electronics and Hindustan Aeronautics.

The missile and ammunitions’ manufacturer Bharat Dynamics was also trading with gains of more than five per cent. Shipyard firms – Cohin Shipyard, Garden Reach Shipyard, and Mazagaon Dock Shipyard – further extended their gains.

The semiconductor theme is also playing out firmly on the street. Shares of Kaynes Technology were higher by almost nine per cent. Moschip Technology has already seen feverish buying into its shares in recent days.

Indices were also gaining strength from the IT stocks. The likes of HCL Technology, Wipro, and others were in demand at midsession on Friday.

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

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