Stock Market: Chandrayaan-3 components makers also moonwalk

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By S Jha

New Delhi, August 24: Indices soared in the early sessions of the day, while tracking bullish global cues after the rally in the US bourses. But all the gains were given up soon after the weekly option expiry play unfolded on the street.

It was a day of block deals. Coforge led the block deal play on the street. The market participants claimed that the street is witnessing a flurry of block deals in select listed companies. The block deals in Coforge attracted strong response from the fund houses. The scrip almost gained 10 per cent on Thursday amid bullish commentaries from the investors.

The sentiments of bullishness brought by Coforge spread over to the midcap IT stocks. Mphasis gained almost five per cent in the day after breaking our from a narrow consolidfating range for the past few days. Owner of naukri, Info Edge, also edged up, while Persistent Systems too joined the midcap IT stocks’ rally. Incidentally, all these midcap IT firms are trading at just a little over 40 PE, showing that they missed out the market rally so far even while their small peers have multiplied.

Chandrayaan-3 successfully landed in the south pole of Moon, which is considered to be the most challenging on technology front. This also announced the arrival of the Indian private sector firms which had boarded Chandrayaan-3. Centum gained over seven per cent. It has provided critical components to Chandrayaan-3. The scrip has gained over 300 per cent within a year. Mtar Technology, which had been on a snooze mode for several weeks, also gained over four per cent, while riding the positive Chandrayaan-3 sentiment. There is no looking back for Avantel, as the scrip gained another seven per cent in the day. Paras Defence also gained over six per cent. There appeared a clear aggressive interest on the part of the investors in scrips with space manufacturing credentials.

On the other hand, the last day’s turnaround in the Bank Nifty was led by Axis Bank and ICICI Bank, which found bullish rollover in the morning session, which took both the scrips on firm territories. But they lost much of the gains as the weekly option contract expiry play kicked in even while the most bullish of the private bank, IndusInd Bank, stayed strong during the day.