Stock Market: Early signs of big boys taking leadership of indices
Photo credit X @nelcoindia
By S Jha
New Delhi, August 23: The indices had for the past few days been stick in a declining narrow range due to the lack of the leadership by the big guns. Bank Nifty had been most dull because of the HDFC Bank being in the snooze mode since merger with HDFC. Nifty is also without leadership, and neither Reliance Industries nor Infosys gives any strength to the index.
But Bank Nifty on Wednesday gained from the double engine of Axis Bank and ICICI bank on one side and the PSU banks led by the State Bank of India coming out strongly. Axis Bank has been on the radar of the investors post-merger of the credit card business of the CITI Bank.
With the private banks shining in the session, the Bank Nifty spurted to go past 44500 level during the day, netting a gain of over 500 points at one point of time. Bank Nifty among the indices is most sold out even while the small cap and the midcaps are at their peaks. Nifty in comparison is also not so heavily sold out as is the case of Bank Nifty.
The positive sentiments also rubbed well on the street following reports that India may have grown at over 7.8 per cent in the first quarter of the current fiscal. This brought cheers to the realty sector as leading rea-estate companies were in demand on the bourses.
Nelco, a Tata stable company, engaged in satellite communications, and Centum, which has supplied parts to Chandranay-3 were buzzing in the trade on Wednesday. The spread of the PSU stocks gaining on the street covered MMTC and Shipping Corporation of India also, as both gained over nine per cent in the day.
Adani Group of companies which had been trending up in the last few sessions were sold heavily. The group remains in the grip of traders with news flow in the ongoing SEBI investigation dictating the direction of the scrips on the bourses. Adani Enterprises lost over six per in the day. Jio Financial remains losing grounds on the bourses, as the scrip lost another five per cent for third day in a row.
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