Stock Market: Power punch detaches indices from falling curve
By S Jha
New Delhi, August 21: After days of making lower lows in the indices, the stock market on Monday staged a smart recover on the basis of an all-round efforts led by the power sector. Nifty closed within a striking distance of 19400 even while the market participants were predicting the index to get weaker and touch 18900 level. Bank Nifty was also resilient during the day led once more by the high beta stock IndusInd Bank.
Both Nifty and Bank Nifty shed the gains to close the day lower from the highs of the session. Bank Nifty seemed strong during the day with almost all the constituents trading in the green. IndusInd Bank and Axis Bank are seen to be providing leadership to the Bank Nifty, which otherwise has heavy been sold, with a net loss of 2000 points in the recent days.
Nifty has shown strength in the 19265-300 range to stage a rebound, while the retracement had begun from the level of 19950. With no negative cues dominant, the indices covered some grounds on Monday.
Once more the power sector was buzzing. Rural Electrification already is on a dream run with the scrip now touching the level of Rs 238. NTPC also gained strongly to touch the level of Rs 219. Power Grid was also strong, as it touched the level of Rs 247. Besides, Tata Power was also buzzing. The power sector is buzzing on the theme of the demand rising on the back of the China Plus one factor raising demands for the manufacturing sector.
A few of the consolidating scrips took off in the Monday session. Data Patterns gained over nine per cent on the back of the strong order book. The Chennai-based private defence firm is trending up for the past few months with strong order book flow. Titagarh Wagons, which had rallied sharply in the recent months, went up sharply in the company of other rail stocks. The Union Cabinet in its meeting had given approval to a slew of proposals. Titagarh Wagons also rose by over eight per cent, while IRCON was strong during the session.
JBM Auto was also buzzing during the session, seemingly trending up on the back of the Cabinet nod to proposal for electric buses in the cities.
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