Stock Market: Indices caught in congestion zone; metals shine in selective actions

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By S Jha

New Delhi, July 25: Financials dragged the stock market on Tuesday with the street awaiting the global cues on rate action. Yet, the metals shined after Tata Steel surprised the street with its quarterly result. While the nifty bucked the selling pressure, Bank Nifty swung wildly during the day.

HDFC Bank was on a solo run on Tuesday to shield the Bank Nifty from steep fall. But Nifty was seen to have reached the buying zone as the index staged a recovery from the sold out level during the day.

Tata Steel led the show from the front, gaining over three per cent to almost touch the level of Rs 120. JSW Steel, which has already come out with its quarterly result, was also bullish to trade once more in its range of Rs 790 to Rs 810. Hindalco, which has been seen to be the most bullish metal stock came strongly in the late session to touch the level of Rs 450 after several months. Even while the indices were in the sideways mode, the metal scrips kept gaining steam throughout the session.

Adani Green, trading on the back of the recent visit of Sri Lankan President Ranil Vickremesinghe, gained 10 per cent to get locked in the upper circuit. The company is engaged in green energy works in Sri Lanka. While the Adani Group is active in Sri Lanka, Adani Green is likely to gain more projects from Colombo for wind and solar power.

Overall, it was a good day for the Adani Group as the group companies Adani Transmission and Adani Power also gained strongly. The power sector has been trending for a few days. After the robust performance of SJVNL, Power Finance, Rural Electrification, NTPC and Power Grid among the large caps were in the action on Tuesday.

Tata Motors, rising on the electric theme, extended its gains on the street to touch the level of Rs 640. Tejas Networks, which once more disappointed the street with its result, today traded in the green. Titagarh Wagon also extended the gains on the street. This company is on a roll ever since bagging the contract to manufacture the Vande Bharat trains. The Railways is also going to commission sleeper trains for Vande Bharat platform from next year.

The fund action was also positive as the foreign institutional investors bought more than Rs 1000 crore of equities in the cash market. Overall, the indices are under the retracement pressure even while select scrips are shining on the street.