Stock Market loses steam tracking global cues, select stocks shine

TDP chief N Chandra Babu Naidu with party's Cabinet nominee in Modi govt

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Sensex loses steam amid reports of hard bargaining among NDA allies

By S Jha

New Delhi, June 10: The euphoria over the formation of the National Democratic Alliance (NDA) government at the Centre on Monday failed to keep the equity market higher. Sensing hawkish US Federal Reserve commentary, Sensex and Nifty erased all gains to close the day with cuts.

Sensex dived more than 400 points in the afternoon session. Along with the bearish global cues, the delay in the announcement of the portfolio of the ministers also dampened the spirit of the investors.

Sensex was trading at 76888 points in the afternoon session. The 30-share index closed with a cut of almost 400 points.

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Nifty also erased all gains on the street. Bank Nifty too closed with a deep cut. Bulls took breaks amid lack of positive cues for the market.

Axis Bank and State Bank of India had led the bulls’ charge on the street in the morning session. Bank Nifty at one point traded with gains of over 400 points.

But the Bank Nifty stayed choppy throughout the first half of the trading session on Monday. The market participants waited all day for the announcement of the portfolios.

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In between, the market participants saw red with reports coming that the Telugu Desam Party (TDP), an NDA constituent, was insisting on the Lok Sabha Speaker’s post.

But the market was buzzing with a new pack of stocks ringing the money counters. Tracking the prediction of an above Monsoon by the weather department, fertilizer stocks gained strongly.

The likes of National Fertilizers, Ralli India, Pradeep Phosphate, and Uflex made strong gains on the street. The fertilizer stocks have been laggards on the street for past several months.

The IT stocks had been trending up in the last two trading sessions of the preceding week. But profit booking hit the IT counters on Monday.

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But the Bengaluru-based Happiest Minds was in another zone, trending up with gains of over eight per cent. This IT company has been consolidating in the range of ₹800-950 for the past two years.

On the other hand, Titagarh Wagons once more resumed the bull run on the street. The Kolkata-headquartered railway firm was in big demand. Shares of Titagarh wagons were higher by 11 per cent.

Badly battered on the day of the election verdict, Rural Electrification showed signs of life on Monday. The shares of REC gained by over four per cent.

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

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