Stock Market: Nifty breezes past congestion zone; govt brings buzz in telecom sector

Spread the love

By S Jha

New Delhi, June 7: After a few days of wrestling in the congestion zone, Nifty moved past the crucial 18700 level to set eyes at record high mark. Indian market valuation once more touched $3.5 trillion on the back of massive gains in the equity markets.

The foreign institutional investors pumped in over Rs 1300 crores in the cash markets to set the bulls rampaging on the Dalal Street. Thursday is all set to be an eventful day, with the weekly option contract expiry coinciding with the announcement of the three days long meeting of the monetary policy committee of the Reserve Bank of India.

The consensus view has converged on a no rate hike announcement by the RBI. The Central Bank’s commentary will be watched out for clues on the inflation projection, as well as any revision in the growth guidance of the Indian economy.

The Union Cabinet in its meeting chaired by Prime Minister Narendra Modi cleared the proposal of spectrum allocation for the state run BSNL. The telecom sector was the biggest gainer on the bourses for several constituents gaining strongly.

Bharti Airtel, which has been in an uptrend ever since announcement of the March quarterly result, once went on a gaining spree to close at Rs 844. The state run MTNL gained over 10 per cent. Tejas Networks, which has been a contractor for the BSNL, gained further grounds after the announcement of the Cabinet decision. A host of other telecom stocks were in demands amid the government stepping up stakes in the sector to raise the scale for the industry, which saw even Vodafone gaining almost 10 per cent on Wednesday.

Nifty was locked in a congestion zone, and the index took off in the latter part of the trading session to cruise past 18700 level to bring short covering in the last half an hour. Residual short covering in the index is not ruled by the technical chartists even while the RBI meeting will also weigh on the direction of the market.

Among the heavyweights in the index, Tata Motors gained strongly along with Hero Moto Corps. Tata Motors is buzzing ever since the announcement of a CNG variant model, as well as setting up a lithium factory in Gujarat to raise the stake in the electric vehicle segment.

Hero Moto Corps has been a late starter in the strong rally among the two-wheeler stocks, and it gained further grounds on Wednesday. Bajaj Auto and Eicher Motors have outperformed the sector in the last one month.