Stock Market: Global equity tidal waves unleash bank frenzy

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Positive global cues pump Sensex as equity rally gains strength

By S Jha

New Delhi, April 30: Dow Jones posted a decent gain of over 130 points on Monday. Tesla powered NASDAQ to stay strong. The Asian equity markets are trending up in the early sessions on Tuesday.

Tracking global cues, the Indian indices are also likely to trend up on Tuesday. Profit booking is not ruled out as Wednesday will be a trading holiday.

The Indian indices on Monday vaulted to record levels. The private banks came out of shadows of the small caps and midcaps.

ICICI bank led the bull charge on the street. Tracking the quarterly results, the shares of ICICI Bank steadily kept gaining all through the session yesterday.

Finally, ICICI bank posted gains of almost five per cent. The banking behemoth, second largest private bank, has a major weightage on Sensex, Nifty, and Bank Nifty.

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Bank Nifty with the help of ICICI bank once more went past the levels of 49000. It may be recalled that Bank Nifty had once in the recent weeks had crossed the levels of 49000 before making sharp retracement to go into the zone of 47k.

The US bourses are trending up on the rising optimism that the earning season is giving numbers as per expectations of the investors. The Asian bourses are also drawing confidence in a sense of abatement of the trade war between the US and China.

The shares of Tesla gained over 15 per cent on Monday. This came on the back of Tesla CEO Elon Musk feted by the top leadership of China over the weekend.

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The banking space is buzzing in the Indian equity space. This is on account of the better quarterly results from some of the leading entities.

Axis Bank, SBI, HDFC Bank, and several of the PSU banks were trending higher in the Monday session. The market participants claim that there is a scope for value buying in the banking space.

Among the large cap, HDFC Bank and Kotak Mahindra Bank continue to be far lagging behind their peers. ICICI Bank and Axis Bank have become clear winners in the recent weeks.

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In the meantime, the small cap segment continues to buzz. The likes of Tejas Networks, Marine Electrical, IREDA, and several others are trending higher.

It is worthwhile to note that the investors have paid least attention to the SEBO concerns on excessive fund flow in the small cap space. The Mutual Funds for SIPs continue to outperform their peers.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)