Stock Market: Pump, battery shine; tech turnaround eyed

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By S Jha

New Delhi, May 11: A higher unemployment data downed the Dow Jones in the afternoon trade, while tech-index NASDAQ was resilient. The weekly option expiry kept Nifty edgy even while the Bank Nifty seemed ready to take off with heavyweights showing signs of strength.

Dow Jones is now over four per cent down from its peak. The index has come under pressure on account of the growing concerns of more regional banks reporting stress due to the high interest regime. More regional banks are reporting sharp erosion of deposits, even to the extent of 10 per cent.

The US is expected to be a mixed bag in the near future because of the lingering impact of the high interest rate regime. The US Federal Reserve is still not clear on its rate hike trajectory.

But the Indian private banks certainly look gearing up for gains. This has been seen in the movement of the Bank Nifty. Led by IndusInd Bank, the private banks are showing signs of strength, with the likes of Axis bank, ICICI Bank coming into their comfort zones. It may be recalled that several of the brokerages are giving buy calls on the private banks.

Bank Nifty in fact had zoomed by over 300 points during the day. But late hour action erased most of the gains even while Bank Nifty posed decent gains of over 150 points. Nifty closed in the red, while the index had been in the sideways mode throughout the day.

The foreign institutional investors once more bought a net of over Rs 800 crores in the cash market. The FIIs are backing up their buying spree of the Indian equities. Their actions are aligned with broader theme of the foreign direct investment picking up in the country with the likes of Apple, Cisco, Hyundai, and others raising their stakes in the Indian economy.

A panel in the ministry of oil has come out with a paper for the roadmap of electric vehicles, calling for all transport buses to go electric in the next four years, besides banning diesel vehicles in cities with over one million population.

Though action may not be related, the battery companies have been buzzing on the Dalal Street. The likes of Nippon Battery, Eveready, Suprajit and others were buzzing on the street. Meanwhile, Kirloskar Brothers, one of the oldest Pune-based company, hit the ceiling with 20 per cent gains on Thursday on the back of an extraordinary quarterly result. The company is engaged in the making of pumps and compressors.

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