Stock Market: Atmanirbhar Bharat knocks at Dalal street, defence scrips fly as equities extend gains
By S Jha
New Delhi, June 5: Nifty retraced from the congestion zone of 18650 to close just a kiss away from 18600 level on Monday. This was on the back of the US equity markets gaining strongly in the Friday session. But the Dow Jones was trading lower on Monday even while S&P and Nasdaq extended their gains.
The chartists are claiming that Nifty may run into a congestion zone of 18650-18700. Generally, index either breaks out from the congestion zone or goes into a sharp retracement. With positioning in the option contracts likely to take firm shape in the Tuesday session, the direction of the equity market may be watched out.
In a survey of investors in the US done by Bank of America, more people are turning cautious as the markets are approaching the summits. The investors are wary of the risks at the higher levels, as risk reward ration turns unfavourable to them.
Also, the US debt ceiling deal is now done, and the treasury bills will hit the market, to the tune of over $150 billion, which may suck out liquidity from the markets, and could have an effect on the equity markets as well, claimed the market participants.
But Atmanirbhar Bharat theme in the defence sector ran the full course on Monday on the Dalal Street, as it was like “you name it, and they sprinted” show took place. Mazgoan Dockyard sprinted the most among the shipyard companies listed on the stock market. Mazgaon gained almost 18 per cent, and the scrip has recovered most of the grounds. It may be recalled that this scrip a few months ago was the hottest share. Cochin Shipyard also gained smartly, as the case with the likes of Paras Defence, Data Patterns. At The Raisina Hills, we have kept the readers informed that the India-China rivalry may bring spotlight on the naval assets of the two countries, and New Delhi will have to step on the accelerator to catch with Beijing in matching the number of warships.
Auto sector shined on the bourses on Monday. Mahindra and Mahindra almost broke out from its all-time high. Tata Motors and Maruti also made smart gains. Tata Motors has plan to set up lithium ion cell factory in Gujarat. Electric Vehicle theme continues to play out in the market.
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