Stock Market: Bulls ride tech to join equity rally; wave of IPOs spur confidence

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By S Jha

New Delhi, August 4: The Fitch downgrading led equity routs were arrested on Friday, as the bulls found comfort in the market gaining leadership from dependable IT sector. From touching the low of almost 1935 yesterday, Nifty today almost kissed the level of 19550, suggesting a pull back from the recent lows for the indices.

Bank Nifty gave a decisive leadership to the equity market early in the day as all the constituents came rocking led by IndusInd Bank to shrug off the bearish sentiments of the last two days. The Bank Nifty had risen by as much as 600 points during the day. It may be noted that the loss of the Bank Nifty in the recent weeks has been more than Nifty.

However, the State Bank of India spoiled the Bulls’ party in the Bank Nifty with weaker set of numbers in its quarterly result. The SBI was knocked down by over two per cent, which was enough to sink the Bank Nifty as the PSU banking major holds heavy weightage on the index. But IndusInd Bank spurted to retrieve the Bank Nifty.

Pharma and Tech sectors are now giving stability to the equity markets. Cipla, buzzing on the back of the stake sale by promoters, and tech Mahindra led the Nifty from the front. A slew of IT majors such as HCL technology, Wipro, Info Edge, LTI Mindtree, KPIT Tech, and others made handsome gains on Friday.

From the pharma sector, Laurus Lab extended its gains, while the likes of Lupin further gained. The government move to bring in the license-system for import of laptops and personal computers sent Dixon Technology and Amber Enterprises to new highs. Both the scrips have broken out of their recent highs, while showing signs of bullish strength. With the government showing intent for higher localization of the electronics manufacturing, the contract manufacturers are much in demand by the investors.

Several IPOs are lined up for this month, with two already live this week. The investors’ confidence appears to have been least dented by the Fitch derating the US currency. The buzz surrounding India standing chance to gain from the China rivalry by the western nations appears to be bringing good tide for a section of the listed firms on the bourses.