Stock Market: Profit booking at high level, broader indices outperform

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By S Jha

New Delhi, December 2: Sensex and Nifty on Friday were down with cuts after profit booking came in the index heavyweights, but the bulls spread their net to the small and midcaps. The foreign institutional investors after heavily selling on Thursday came back on positive note with a net buy of R 215 crores, while their domestic counterparts pumped in Rs 712 crores in the equity market.

Sugar was the new theme in the Friday session after the report that Bajaj Hindustan had paid off all its arrears sent the scrip soaring to the upper circuit with 20 per cent. Kothari Sugar, Rajsthree Sugar Sakthi Sugar, KCP Sugar Industries, Andhra Sugar, KM Sugar Dalmia Sugar were among the small sugar scrips which posed handsome gains in the broader market rally on Friday.

The second quarter GDP growth had shown that the construction sector, including realty, had done well, which wasreflected in the gains of the pipe companies. Venus Pipes, Prince Pipes, Hariom Pipes posed significant gains on Friday, showing the spread of the market rally after the heavyweights had taken the Sensex and Nifty to record high on Thursday.

The IT sector, which had positively reacted to the third quarter GDP growth in the US, remained firm in the Friday session. While the heavyweights in the IT pack such as Infosys, TCS, HCL technology were flat to positive, Tech Mahindra continued with the rally gaining another two per cent. The IT rally seems spreading to the small and midcaps as Persistent Systems, LT Technology, Coforge, Info Edge, NIIT Limited, Ramco Systems posted gains on Friday.

The Bank Nifty, which scaled new peak in the Thursday session, came under pressure, but in the last hour the index covered half of the loss, with the likes of Bandhan Bank and Axis Bank recovering from the day’s lows. ICICI bank and HDFC bank remained under stress, accounting for the cut in the Bank Nifty.

The last year’s bussing IPOs such as PayTM, Nykaa, Policy Bazar, Rategain reported buying interests from their low levels. Such scripshave been hammered by the market this year, losing one-third of their valuations on their earning concerns and losing their market shares.

Apollo Hospital and Tata Steel were firm on Friday, posting good gains. Apollo Hospital is in clear uptrend, with the crip just a kiss waya from Rs 4900 level, while Tata Steel is seen to be approaching the breakout zone, which the chartists peg at the Rs 114 level.