Signs of Budget pain for stock market ebbing -

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Nifty erases losses after sharp gains in Tata Motors

By S Jha

New Delhi, July 25: Sensex opened with a deep cut on Thursday, while tracking bearish global cues. Japan’s Nikkei closed the day with a cut of over three per cent.

The global rout in the equity markets extended for third day in a row on Thursday. The tech-meltdown on NASDAQ triggered the global equity rout.

Two-digit percentage crash in the stock price of Tesla led the fall on NASDAQ. Other stocks also pulled down the indices, while tracking a weak set of numbers by the frontline listed firms.

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Nifty opened in deep red on Thursday. The 50-share index shed almost 180 points. At the start of the trade, none of the stock was in the green.

Bank Nifty remains the weakest of the indices. The banking index once again plunged deep in the red. Bank Nifty has taken the maximum hit after the unveiling of the Union Budget.

But Tata Motors opened the window of the dark room. The automobile giant has been showing strength for past two days.

The maker of marquee Jaguar spurted by seven per cent during the day. The share price of Tata Motors is now looking at a life beyond ₹1100.

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The Tata Motors shares have not risen corresponding to the rise in the price of the Mahindra and Mahindra. Both the automobile stocks are the frontline players of the electric vehicles.

Union Minister for Finance Nirmala Sitharaman in her Budget speech spoke of making space economy five times with the help of venture fund. The Chennai-based Data Patterns spurted by 10 per cent on Thursday.

But the day belonged to the energy stocks. ONGC appears to be in a zone of own. The oil and gas major has almost risen by 75 per cent in the last one year.

The shares of ONGC spurted by another five per cent on Thursday. BPCL was also firm in the trade. Confidence Petroleum vaulted by almost 15 per cent on Thursday.

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Nifty and Sensex on Thursday showed signs that the Budget pain may be ebbing. Nifty almost erased all the losses of the day.

The budget day plunge to 24100 is a good 300 points away from the day’s close. Nifty closed above 24600 on Thursday.

While Bank Nifty remains weak, HDFC and Kotak Mahindra Bank showed life during the day’s trade. The monthly option expiry on Thursday may also have been a factor on Thursday.

Disclaimer: This article makes no recommendation for any stock or derivative trade.

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