Stock Market: Fund buying sends indices in uptrends; tech-action on cards -

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By S Jha

New Delhi, April 26: After several days, the foreign institutional investors reported a net cash buy of over Rs 1200 crores in the equity market on Wednesday. The heavy foreign fund buying brought a turnaround in the broader market, with Nifty staging a recovery of over 100 points from day’s low. The Bank Nifty once more helped the bourses on a steady path with strong gains.

The Indian bourses will be heading to weekly, as well as monthly expiry on Thursday, when the trend shows that the market behaves independently of the external factors, balancing the actions of the option writers. With Dow Jones reporting a cut of close to 200 points, having lost more than one per cent in the last five days, NASDAQ, the tech equity platform, was trading with strong gains on the back of good numbers from tech-giants.

The Indian IT space may be watched out, as the sector has been the most laggard, but with the FIIs coming back in the action the sector could gain the spotlight. The FIIs in the recent past few weeks have shown appetite for financials and new categories of stocks in line with the sectoral shift in preferences.

Yet, KPIT Tech, an IT company focused on automobiles, reacted positively with a gain of over six per cent after reporting strong numbers in the quarterly result. The scrip, which had been pushed down after a de-rating by a foreign brokerage, is back in the upswing on the basis of the quarterly performance, which the market participants claim to be one of the best. The company is now almost commanding a valuation of Rs 24,000, and is seen as a clear outperformer. The action was also seen on Wednesday in some of the smallcap and midcap IT companies even while the realty sector gained the most.

Gujarat-based stated-owned PSUs were the star performers, with some gaining even 20 per cent, on the back of the news of the Gujarat government tweaking the dividend distribution norms. The likes of GSFC, Gujarat Mineral Development Corporation, and Gujarat Alkali gained strongly on Wednesday.

The street is rewarding the outperformers in the quarterly result, and the trend was seen in NELCO, a Tata company, gaining another six per cent on Wednesday. Nifty is now above the psychological level of 17800, and the Thursday action will be keenly watched out. Advance, decline ration on Wednesday of equities was 5:4.