Stock market looks askance from cliff for cues from Budget

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Sensex and Nifty show signs of fatigue ahead of Union Budget

By S Jha

New Delhi, July 16: Sensex was lacklustre on Tuesday ahead of trading Holiday tomorrow. The 30-share index struggled all day to close almost flat.

Nifty showed no signs of directions on Tuesday. The 50-share index remained range-bound. In the last hour of the trade, the index dived to erase most of the gains of the day.

Bank Nifty extended its weakness. Amid spike in retail inflation, the banking index is looking weaker among all the indices. Bank Nifty ended the day with cuts.

The street is looking at the unveiling of the Union Budget on July 23. The government has called an all-party meeting for the Budget session.

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Sensing the mood in the government, the realty index has been trending. The realty index extended gains on Tuesday. Prime Minister Narendra Modi is being seen by analysts to give relief to the middle class through the housing sector.

But the petro-chemical sector was the show stopper of the day. Petroleum and chemical stocks led the bulls’ charge on the street.

After a major rally in ONGC, it was the turn of BPCL on Tuesday to lead the 50-share index. An upgrade from several of the brokerages helped Coal India also to assert its dominance in Nifty. Brokerages have given targets in excess of ₹600 for Coal India.

But the small caps in the petro-chemical sector trended on Tuesday. Camline Fine Sciences, Himadri Chemical, Chennai Petroleum, NOCIL, Supreme Petroleum, and others were favourites of the bulls.

The pharma sector was also buzzing in the day. The likes of Alembic Pharmaceutical and Natco Pharma from the midcap led the bull’s charge on the street.

The cement and the FMCG counters too made gains on the street. Hindustan Unilever and Tata Consumer Global were trending during the trade hours. Hatsun Agro was also trending in the session.

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The corporate consolidation game in the cement sector is seen spreading to smaller scrips. The likes of Heidelberg cement and India Cement extended their gains on Tuesday.

A media statement at midsession on Tuesday by the government about promotion of the domestic procurement in the defence sector pulled some of the shipyard stocks.

The railway stocks were under pressure on Tuesday. Jupiter Wagons cracked with more than five per cent cut in its share price.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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