Stock Market: Big boys make hey after dark Fed cloud recedes

Spread the love

By S Jha

New Delhi, March 31: The week belonged to Reliance Industries, as after a failed breakout it came back strongly on Friday to step up gas on Dalal Street to push indices to three months high. Positive commentaries and demerger trigger gave a robust momentum to Reliance Industries.

The Mukesh Ambani-led firm had made one failed attempt to break out above Rs 2280 level, falling back to Rs 2215. But the heavyweight scrip was making a fresh attempt to convincingly break above the Rs 2300 level, which it did on Friday when the market was full of positive vibes all around.

Over four per cent gain in a heavyweight scrip such as Reliance Industries was to entice other big boys of Nifty and Bank Nifty to make hey in the sunshine. ICICI bank, Infosys, Nestle and other made the most of the gains on Friday to close the financial year on a positive note.

Tracking the global cues after the US equity markets closed higher amid receding US Fed rate hike fear and also assurances that there will be steps to safeguard the banking institutions, World Bank added positives by giving higher growth rate projections for China. By reopening its economy, China is aiming to hit above fiver cent GDP growth in the next fiscal against two per cent seen previously.

The last financial year for the equity gave a mixed bag. The year was truly for the public sector utilities (PSUs). The PSU banks led the show, gaining mostly. The PSU firms in the defence sector again gave a stellar show. The shipbuilders among the PSUs were also runaway success stories of the year. The likes of Hindustan Aeronautics, Bharat Dynamics, Mazgaon, etc., made the most of the gains.

With the government pushing up for higher indigenisation in the defence sector, market participants are confident that such PSY firms along with a few private players may have more legs to run in the new financial year.

Once more the Indian equity markets were rescued by the banks, which had been leading the charge for comeback from oversold conditions for past 18 months. The IT and the realty sectors were the worst performers in the last financial. With the US and Europe not yet out of the wood, the IT sector may still have to wait for better clarity.