Stock Market: Bulls take auto-ride to street sighting easing yield, oil

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By S Jha

New Delhi, October 5: After shedding four per cent in a fiery spell of rout on the Dalal Street, Nifty gave signs of life by rising by over 100 points. Bank Nifty suggested rebound from an oversold position by netting a gain of over 250 points.

The US treasury bond yield had eased yesterday, while the crude oil price had also crashed by four per cent. The two factors along with strengthening dollar had wreaked havoc with the bourses beating the bulls black and blue in the last few sessions. The foreign fund houses have also been selling the equities aggressively to give a fertile ground for the bears to strike back.

But Nifty was firmly in the hands of bulls on Thursday on a day of weekly expiry, extending the relief recovery seen in the late session on Wednesday when the index had covered over 70 points. The Bank Nifty had also made similar recovery to erase part of the losses.

The repair work in the indices was done in the late session yesterday by HDFC Bank, which was reacting to the internal management rejig. The banking heavyweight extended the gains in the Thursday session also. Also, the ICICI bank too joined the party with HDFC Bank, both account for 60 per cent weightage in the Bank Nifty. ICICI Bank, which has been the most laggard private banking scrip this year, gained almost one per cent in the day. However, the PSU banks came under the selling pressure as the likes of Punjab National Bank lost the momentum.

The NASDAQ for a few days had been trading in divergence to Dow Jones, and the effect was seen as TCS and Infosys led the charge of the bulls, as both the scrips at one point of time gained over two per cent each. Birlasoft also gained strongly in the day, touching the level of Rs 543.

However, the day belonged to the diversified conglomerate Larsen and Toubro as the scrip for the first time crossed Rs 3100 level, living up to the chartists’ claim of the company having given a major breakout. It was also helped in the further expansion of the defence positive list announced by the Ministry of Defence yesterday, which positions L&T smartly in the defence play.

The realty and the auto sectors were also buzzing in the session, as a number of scrips made smart gains during the day. Bajaj Auto, Hero Motors, Mahindra and Mahindra, and others were the gainers.