Stock Market: HDFC clan opens doors ajar for bulls on street

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By S Jha

New Delhi, June 27: Sideways swings of the last few days on the bourses were set for unidirectional move in the indices on Tuesday by the HDFC clans. Nifty once more claimed the 18800 level, and bank Nifty also sailed past the psychological level of 44,000.

HDFC group has been gaining momentum for the past few days in the run up to the consolidation of the businesses with merger. With favourable news flow, the group companies have been spurting on a few days and later retracing.

But HDFC Life led the surge from the commencement of the trading session on Wednesday. The private life insurer after retracing almost all the gains in the early hours of the trade once more set out for a big surge. The scrip at one time had gone past the Rs 670 level to close at Rs 667, becoming the best performing private insurance scrip on the bourses in the recent months. Brokerages claim that SBI Life Insurance is delivering better numbers, but the merger theme is spurring HDFC Life to new highs on the street.

HDFC Bank has been the elephant in the room for the Bank Nifty. It rarely moves and remains in the range bound zone. But HDFC Bank had cheered the chartists on Monday with smart move, indicating that the banking behemoth is gearing for a big move. On Tuesday, HDFC Bank went soaring briefly, spurting from Rs 1650 level to Rs 1670 within a few minutes. Similar momentum was seen in HDFC.

With the HDFC clan on song, Nifty climbed by 126 points to close at 18817. Bank Nifty climbed by 480 points to close at 44121 on Tuesday. With Thursday being a holiday on account of Bakrid, the weekly and monthly expiry of option contracts will take place tomorrow, and moves in HDFC clan may bring in the element of short covering on the indices.

Bank Nifty in the last one month has not added much gains. But the onset of the July series may augur well because the heavyweights such as SBI, ICICI Bank, HDFC Bank, and Axis Bank showed strong gains on Tuesday.

The auto sector gained on Tuesday with Mahindra and Mahindra along with Tata Motors leading the sector, besides Bajaj Auto. Small caps continue to gain strongly with the likes of Jupitor Wagons, Avantel, Data Patterns, KPI Green, Surya Roshini, Rane Holding, Jindal Saw making smart gains.