Stock Market: Nifty kisses 20k amid frenetic buying in themes

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By S Jha

New Delhi, September 11: The gala G20 Leaders’ Summit convinced the foreign fund houses to renew buying into the Indian equities, as Monday took the bourses on a fast and furious lane. Nifty briefly went past 20,000 level, which is a first for the index. Sensex also zoomed by over by 500 points to close at 67,127. Bank Nifty also spurted by 414 points to close above 45500 level.

The foreign institutional investors, who have already invested record volume in the last six months, brought another Rs 1473 crores in the cash market. Their domestic counterparts were also net buyers. The ambitious India-UAE-Saudi Arabia sea-cum-rail corridor with the pact being backed by the US brought furious run into the potential gainers.

The two state-owned rail stocks – IRCON and Rail Vikas Nigam Limited – galloped to their record high. IRCON was locked in the upper circuit, and the RVNL also jumped by over 17 per cent. Indian Rail Finance Company was locked in a 10 per cent circuit. Private rail player Titagarh Wagons and others also joined the party on the bourses.

The ambitious sea-cum-rail corridor project is being seen complementing Prime Minister Narendra Moodi’s proposal to link the ASEAN nations with Europe through India and West Asia. If the proposal takes off, the rail experts claim that there could be a potential revival of the project first mooted in the 1990s to float a trans-Asia rail network.

Adani Port, which owns Haifa port, was the clear winner in the backdrop of the India-UAE-Saudi Arabia economic corridor, while Adani Enterprises also trended in the league. Container Corporation of India, a disinvestment candidate, was also strong in the session.

Nifty by touching 20,000 level in the day has logged in a speedy run from the recent retracement, which had taken the index to the level of 19250 level after correcting from the 19950 level. Technically, claim the chartists, Nifty is in a bullish phase and the festive season spirit is yet to catch up the bourses.

Pollster Axis My Survey had recently come out with a report that Sensex may cross the 70,000 level by the festive season, which is taken to last till Diwali. If that is a case then Sensex has another 3000 run in the reckoning, which may translate into another 600 points for Nifty. But chartists also underline that retracement is integral to the movement of the bourses, and one must be ready to face profit booking at the peak.