Stock Market: No fatigue on bourses; Nifty fires all cylinders

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By S Jha

New Delhi, July 3: Traders on Monday kept their fingers crossed for the possible profit booking to kick in on the bourses. Briefly, they looked elated to have called it right to go cautious and book profits. But the last hour surge belied their calculations, as indices closed at an all-time high.

The morning kick to the bourses came from the HDFC twins after the front page advertisement splashed dailies of the mergers of the HDFC Bank and HDFC. The top management of the HDFC Bank has said that post-merger the banking behemoth will be on a string growth territory to create a HDFC Bank every four years.

HDFC Bank and HDFC both gained over three per cent to send the indices trending. It may be noted that HDFC Bank has the maximum weightage on Bank Nifty, while HDFC is among the heavyweights on Nifty. However, both shed almost two per cent each after the traders rushed to book profits.

But the bourses gained strong momentum after the Reliance Industries began trending by gaining over two per cent. The Oil and Gas sector was trending, logging the best gains on the bourses. The likes of Bharat Petroleum, HPCL, and others also made strong gains on the bourses.

The foreign institutional investors (FIIs) continue to be bullish on the Indian stock markets. They once more poured Rs 1995 crores in the cash market. The FIIs had accounted for net inflow of Rs 18,000 crores in the last two trading sessions last week. However, the domestic institutional investors were marginally on the bearish side, accounting for a sell of Rs 337 crores.

In the backdrop of the Reserve Bank of India reporting better baking health, the PSU banks were trending on Monday led by Bank of Baroda which gained over four per cent. Punjab and National Bank also gained over four per cent. The SBI too netted smart gains. It may be recalled that the PSU banks had been the best performer among the banking scrips last year. The PSU banks are gaining from the consolidation with mergers and capital infusion, as well as recovery from the insolvency resolution processes.

KPI Green once more took off to gain over seven per cent. Avantel was also a smart gainer on the bourses. Two IPOs of last year – Rate Gain and Latent View Analytics – were also smart gainers on Monday.