Stock Market: Hydrogen play guides Dalal Street to greener pastures

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By S Jha

New Delhi, February 15: Hammered by the bears riding on Adani report of the Hindenburg Research, the equity market needed strong hands to break free from the clutches of the bears. India has ambitious plan to tape the renewable sources of energy and the hydrogen mission unveiled by the government is seen to be catching the fancy of the large industrial houses and startups.

The non-fossil sources of energy may give India deep cushion to gain freedom from the dependency of the oil-producing countries, which suck out the hard-earned dollars by Indian exporters. Hydrogen theme by all accounts is buzzing on the lines of the solar power. Some of the solar power companies have shown extraordinary share price movements in the stock market in the last two years. The likes of KPI Green Energy climbed from the level of sub Rs 100 to touch the high of Rs 900 and above before issuing 1:1 bonus.

Reliance Industries after unveiling the hydrogen-powered truck has made a strong comeback on the bourses. The heavyweight scrip sent the indices soaring on Tuesday. The Mukesh Ambani-led industrial behemoth was back in action again on Wednesday, as the stock single-handedly pulled the indices out of the blue to once more go on short covering. Reliance Industries being an index heavyweight gave the much needed leadership to the equity market to shrug off the bearishness in the wake of the Adani bashing by the foreign fund houses.

Nifty regained the crucial level of 18000 after a long gap, while Bank Nifty also joined the party to go past the level of 41700 on Wednesday. The indices are going to the weekly expiry after two days of strong gains. With Reliance Industries in firm bullish momentum, the Thursday expiry will be keenly watched out, for there could be chances of short covering, which may push the indices to higher levels.

If Reliance Industries held the street safe from the bears, it was the IT pack which came in action to give a strong rally to the bourses. Tech Mahindra, which has been badly beaten down in the recent months, went trending to gain over five per cent during the day. The mood in the IT camp was set by HCL Technology, while the likes of Infosys also joined the action. Eicher Motors and Appollo Hospital also trended on Wednesday. The foreign institutional investors remained net buyers in the cah market with the contribution of Rs 432 crore for the fourth consecutive session.