Stock Market: Modi@370 litters sugar cubes on oily Dalal Street

By S Jha

New Delhi, February 6: Shrugging off the rising bond yield in the US, the Indian indices closed higher on Tuesday. Nifty closed above the psychological level of 21900 to take an aim at the crucial 22000 mar. Sensex also now is aiming at its all-time high, as the index posted handsome gains on Tuesday.

The gains in the Indian indices came despite a selloff in Asia yesterday amid deepening concerns over the health of the Chinese economy. Also, there appears a rise in the feat that the sinking of the Chinese stock markets could create ripple effects for the global markets. But the Indian indices apparently drew confidence from the bullish claims made by Prime Minister Narendra Modi while speaking during the reply to the debate on the motion of thanks to the address of President Droupadi Murmu to the joint session of parliament. Modi said that the BJP will win 370 Lok Sabha seats.

The IT bluchips led the bull charge on the street on Tuesday. TCS has seemingly emerged the most bullish of the largecap IT stocks on the street. It took to the flying start with the ringing of the opening bell and never looked back. TCS posted a gain of over four per cent during the day to set sight on the Rs 4200 mark. It was closely followed by Wipro, which went past the level of Rs 500 after a gap of several days. Infosys also joined an all-round party of the largecap IT stocks.

But the day belonged to the oil and gas PSUs amid Modi inaugurating the Indian Energy Week 2024 in Goa with the biofuels emerging as the buzz on the street. Bharat Petroleum, Indian Oil Corporation, and ONGC extended their gains on the street, gaining as high as six per cent in the day. The turnaround on the equities of the oil company has caught the fancy of the investors who are hoping that the biofuels, hydrogen, EV charging theme could power the oil PSU to higher levels.

But the street was littered with sugar cubes as the emerging biofuel theme which is being pep talked by Modi brought cheers to the sugar scrips. Triveni Turbine rocketed to the 20 per cent circuit on Tuesday. The likes of Bajaj Hindustan, Praj Industries, and others also shined during the day by posting handsome gains on the street.

(Disclaimer: The article makes no recommnedations for buy or sell of shares of any company)   

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About The Author

S Jha

S Jha is a senior journalist, who for years has written on policy and economy.

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