Sensex vaults with block deals in large caps

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Stock market gallops amid frenzied fund-based buying

By S Jha

New Delhi, July 26: Sensex on Friday jumped by over 1200 points to regain the 81,000 level. The Indian equity market posted seventh straight week of gains.

Helped by a furious spree of block deals in the large caps, Sensex vaulted by almost 1300 points to close above 81300 level. The domestic and the foreign fund houses went on block deals in the blue-chip firms on Friday.

In four days, Sensex has gained over 1900 points. The low of the Sensex was 79400 this week. The Sensex had gone in a tailspin after Finance Minister Nirmala Sitharaman unveiled the proposals of hike in the capital gains tax, as well as security transaction tax (STT).

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But there has been no looking back for the bourses since yesterday morning when the bulls began the repair works on the street. The bulls bought into the market, and dips were lapped by investors amid signs of sectoral rotation.

On Friday, the foreign institutional investors provisionally pumped a whopping ₹2514 crores in the equity markets. Their domestic counterparts were also aggressive in making bets on the scrips. The DIIs reported a net buy of ₹2774 crores on Friday.

The day began with the fund houses chasing the blue-chip scrips. The IT pack flew with the help of fund-based buying.

Reports said that large block deals were seen in the likes of HDFC Bank to the tune of ₹170 crore, Cholamandalam Financial Holding to the tune of ₹162 crore, Shriram Finance to the tune of ₹159 crore, Bajaj Finserv to the tune of ₹143 crore, ICICI Lombard General Insurance to the tune of ₹130 crore.

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The block deals were also seen in Cyient (₹120 crore), Tata Consultancy Services (₹114 crore), Tata Motors (₹110 crore), Colgate-Palmolive India (₹104 crore), Kotak Mahindra Bank (₹98 crore), and others.

The likes of Infosys and Wipro too were trending. Bharti Airtel was also buzzing in the session. Shriram Finance was locked in the 10 per cent upper circuit.

The large cap rally took the wind out of the small cap on Friday. The strong rally in the large cap sent Nifty and Bank Nifty galloping.

Insurance scrips were in strong demand on the street. The gains were led by the frontline stocks such as SBI Life and HDFC Life. Both the scrips have been showing strength for past few days.

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The general insurance scrips also rallied on Friday. The first day of the August series in the market brought cheers to the bulls as the big fund houses are seen raining money on the street.

Disclaimer: This article makes no recommendation for any trade/ investment in the stock market.

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