Stock Market: Pause after quick spurt; pipes tell tales of betting right horses
By S Jha
New Delhi, May 9: Global traders in the past few weeks had turned bullish for a summer equity rally. Their hopes found fulfilment at least in India, as Nifty raced with a gain of almost four per cent in a month. Sensex and Bank Nifty too made quick gains. The age-old street wisdom says that a pause after such a spurt is healthy.
The equity indices were choppy on Tuesday. Nifty gave up all the gains in the day by the time trading window closed for the day. Bank Nifty closed with a minor cut. Bank Nifty once more proved to be the star, driving the broader market.
The global equity markets were also trading flat to negative in the afternoon session. Fund houses are expressing bullish sentiments on India. Some of the PEF fund houses have asserted that they would scale up their investments in India. The portfolio investors are also turning bullish on India.
Foreign Institutional Investors continue to buy equity in the cash market on a big scale. The FIIs once more bought a net of over Rs 1900 crores in the cash market. Their domestic counterparts also bet Rs 400 crores in the cash market. The institutional action appears to be going into one direction. This should give a sense of security to the retail investors. The big boys are indeed in the equity game. Sometimes, stock picking becomes easy when the big boys run the show in one direction.
Stock picking is likely to be difference between the winning and the losing bets. If the IT, realty, insurance, housing finance sectors have disappointed the investors, then there are a few other areas where the investors have been hugely rewarded. The difference could have been made by keeping a tab on the Indian economy.
Last one year has been a show of grandeur for pipe businesses in the country, at least in the performance of the equities. Venus Pipes and Hariom Pipes are two examples of the right equity bets rewarding the investors handsomely.
Venus Pipes in the last one year has given a return of 157 per cent. The company has also shown healthy growth in the financials. From September 7, 2022, Venus Pipes is a consistent gainer on the street, rising from Rs 400 a share to Rs 913 now.
Similar is the story of Hariom Pipes. The company has given a return of 175 per cent in the last one on its share price. It also began its upward sloping journey in August last year, and the scrip has not looked back.
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