Stock Market: Indices script turnaround; bulls set eye on Nifty@19k

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By S Jha

New Delhi, June 20: In the absence of any firm cues, stock market indices on Tuesday launched onto a massive turnaround to bring the bulls back in the game to set eyes on the elusive 19000 level for Nifty. The eventful day was marked by Bank Nifty scripting a turnaround of over 420 points, with the surge coming in the second half of the trading session.

The indices went into deep cuts in the early hours of the trade on Tuesday. But the IT heavyweights and Reliance Industries began blipping on the green territory to bring the bulls back in the action. The day belonged in the first half to life insurers – HDFC Life, SBI Life and ICICI Pru Life – as they gained strongly, tracking the momentum in the last few days.

The small caps too continued buzzing strongly. KPI Green Energy was trending on Tuesday, posting a gain of over 13 per cent. It’s trading at all-time high. KPI Energy, it may be noted, had given bonus in 1:1 ratio a few months ago; and it’s actual price if not for bonus should have been Rs 1470 on Tuesday. This gives the kind of rise in the scrip from the level of Rs 140 two years ago when it had come to the main indices from the SME platform. KPI Green Energy currently is trading at a PE of 24.

But it was the twin sectors – IT and Auto – that turned around the Nifty on Tuesday. HCL technology led the IT pack from the front, gaining over three per cent, which is significant for a large cap. Among the mid caps, Happiest Minds also gained over three per cent. Other IT scrips were trading with marginal gains.

The first half of this year has truly belonged to the auto sector, with both the four-wheeler and two-wheeler companies catching fancy of the bulls. Bajaj Auto has led the two-wheeler front, with the likes of Eicher Motors also gaining smartly. Hero Motors has been the most laggard within the two-wheeler sector.

Tata Motors, which has grabbed the second position in the country after Maruti, was hailed by chartists on Tuesday for having broken out. It was trading at over Rs 580 level, counting among the slow and steady gainers on the indices.

Tejas Networks, which has been working with BSNL for several years, was also buzzing on Tuesday along with Mazgaon Dockyard. The government has given the third tranche of investment in the BSNL with aims for its revival.