Stock Market: All hands on deck bring lifting tide on bourses

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By S Jha

New Delhi, July 31: At a time when the experts had been warning of exhaustion, the Monday session saw all hands on deck to bring the lifting tide to take the indices to the highs of the day. The power sector extended the gains with NTPC leading the show amid a sectoral rise on the back of the robust quarterly results reported by the participant scrips.

NTPC, the power producer behemoth, in a space three days has given a return of almost 10 per cent. It has jumped from the sub-200 level to Rs 218 now, and the scrip still appears to have steam left, as it closed at the day’s high on Monday.

Power Grid, another PSU from the power sector, further extended gains on Monday, rising by another three per cent to close at about Rs 266. It also has netted over 10 per cent gains within a week. Rural Electrification is on a roll, netting over 17 per cent in the last five days, and the scrip is climbing further as it gained another four per cent on Monday. While Tata Power paused after spiking, the power sector is seeking attention from the investors by giving steady gains for the last three days.

Incidentally, NTPC and Power Grid were top gainers on the index for the second day in a row. ONGC too gained strongly amid reports that the foreign institutional investors are buying into companies engaged in oil and gas sector amid sectoral shifts.

The US economy had reported a better than expected growth on Friday. This had a positive impact on the scrips from the IT sector. TCS once more led the show in the IT pack, gaining the most followed by Tech Mahindra, which had been battered on the back of its quarterly result. Wipro, Infosys, HCL technology, Birlasoft were also among the gainers, while Newgen Software further extended the gains since reporting a better than expected quarterly result recently.

Nifty spiked by over 125 points during the day, while the Bank Nifty also saw participation of almost all the constituents to net a gain on Monday. The initial spark to the indices were given by the metal sector as the pack of Hindalco, Tata Steel and JSW Steel gave impetus for bulls to make a charge on the street in a week which is likely to keep the markets edgy over the monthly monetary policy meeting of the Reserve Bank of India.