Stock Market: Bourses ride auto; sideways theme knocks expiry
By S Jha
New Delhi, July 6: The weekly option expiry session is setting out amid sideways theme after the indices soared to the peaks in the last few days. The market actions on Wednesday were swayed by sideways theme even while the fund flow in the market keeps the equity investment buzzing.
Nifty managed to close at about 19400 level on Wednesday after the index stayed in a small range on both the sides. The Bank Nifty was pulled down after the HDFC Bank took a heavy cut of over three per cent. The movement in the HDFC twins could be a threat to the bulls as the monthly contracts of both HDFC and HDFC Bank would expire on July 12, which may force sharp erosion of the premiums, which were based on the full month time cycle.
Yet, the auto sector turned hot on the Dalal Street. A late surge in Maruti took the scrip apst Rs 10000 level, a milestone for India’s largest automakers, valuing it at over Rs three lakh crores. The surge came after the news break of Maruti breaking into the premium SUV segment with a new launch. Maruti had previously touched the level of Rs 9800, and the Wednesday price action, as per the chartists, may take into a new territory.
Hero Motor, buzzing with the launch of the premium American bike Harley-Davidson, continued with gains. The two-wheeler major finally appears to be shedding the tag of the most laggard stock in the segment. Its surge has knocked down rival Eicher Motors, which lost heavily in the last two days. At the same time, Bajaj Auto, slammed in the past for not rewarding the equity investors, continued with its stellar show on the bourses by gaining over five per cent, and coming close to Rs 5,000 level, another milestone for the two-wheeler giant.
Divi’s Laboratories had previously been a multibagger but the scrip lost over 50 per cent of its value in the last two years. But the scrip is now staging a turnaround, as it has almost come to the level of Rs 3800, with strong momentum seen in the stock.
Engineering goods companies were buzzing on Wednesday, with the likes of BHEL, Genus Power Infrastructure, Bhansali Engineering, and others making big gains on the bourses. The engineering goods companies with stakes in the electricity sector is gaining attraction on the Dalal Street on the premises that the market growth potential is huge in the country.
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