Stock Market: Bourses sip sugary syrup; indices edge up with broad gains
Hindalco
By S Jha
New Delhi, September 14: The Indian indices edged up on Thursday amid sideways action with positive bias. Nifty is firmly trending up, with modest gains taking the index higher above the 2100 level. The Bank Nifty was mostly sideways to finally settle with gains.
The report that Maharashtra may report almost 14 per cent less sugar production firmed up gains in the share prices of the sugar mills. Secular rally was seen in the sugar stocks, which gained in the range of four to 15 per cent. The sugar stocks are trending up for the past few days and the brokerages are betting on them for further rise in anticipation of firming up of sugar prices in the event of production shortfall.
It may be noted that the sugar stocks have lagged behind other smallcap and midcaps this year. The commodity sector scrips are almost pushed behind by their peers in other sectors which have been on phenomenal run in the last six months on the back of massive fund pouring in the bourses.
Hindalco was the showstopper of the day. The aluminium behemoth gained the most, and at one time it seemed as it would run away. The scrip almost scaled its 52-week high. Hindalco is trending up on the back of news that the comoany would make aluminium extrusions for the Vande Bharat Trains in association with an Italy-based company.
It was trending up in the company of other metal firms such as Tata Steel, NMDC, and others. The metal scrips are also trending up because of the China factor as the Communist nation is likely to go aggressive in pump priming the economy amid disinflation taking the economic situations to bad shape.
The smallcaps and midcaps, which were battered on Wednesday, recovered part of their losses and continued on upward move. The railway stocks which had been on phenomenal run made modest gains in Thursday. The likes of IRFC, IRCON, Rail Vikas Nigam Limited, and others made gains in the rage of two to three per cent.
About The Author
