Stock Market: Indices stuck in sideways mode; select scrips scale peaks

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By S Jha

New Delhi, August 21: At a time when the concerns on the possible global spike in inflation loom, the broader indices remained in the sideways mode. Both Nifty and bank Nifty mirrored yesterday’s actions, shedding all the gains by the time the bell rang for the day’s trade.

While the indices are getting support at the lower levels, there appears to be stiff resistance in going higher. Sell on the rise appears to be playing on the street, with the index heavyweights not giving leadership. With heavyweights such as HDFC bank on snooze mode, Bank Nifty is also struggling to ride momentum.

Additionally, the fund actions also remain muted. The net sell of the foreign institutional investors were negated by the buy by their domestic counterparts. Thus, there was no decisive fund action on the counters to pull the indices on the higher trajectory.

But the power sector has firmly emerged as the theme to ride on for the investors. BHEL, the PSU giant, gained over 10 per cent after the report of the company bagging a major contract from Adani Power. On the other hand Adani Power on its own is in a momentum ride, with the scrip consistently making new highs.

NTPC, which has the largest solar power project under its belt, was also steady in its gains. Investors are also looking at power companies which may serve the needs for the transformers’ requirements in the country. A few of the scrips in the sector such as Voltamp Transformer and Shilchar Technology are steadily gaining on the street. Silchar Technologies in fact has made a gain of over 22 per cent in just five days. Even the likes of Suzlon Energy and Rattanlal Power, SJVNL, HBL Power Systems and others are gaining strongly on the bourses.

Newgen Software among the smallcap IT companies appears to be on the path of gaining strongly on the bourses, as the scrip is now nearing Rs 1000 level in weeks after declaring the quarterly results. The midcap IT scrips such as Mphasis also were in strong demands. Dixon Technology extended the gains on the bourses on the back of the government ban on import of laptops, PCs, and other electronics products.

Meanwhile, Adani Enterprises amid reports of the promoters increasing stakes has now crossed the level of Rs 2700 after several weeks, with the scrip showing momentum.