Stock Market Shines Sighting Budget & Trump Inauguration
HCL Tech completes 25 years in stock market Image credit X.com @NSEIndia
Telecom & Defence Lead Bulls’ Charge on Dalal Street
By S Jha
New Delhi, January 20: The stock market today gained strength with unveiling of the Union Budget inching closer. The global equity markets also heaved a sigh of relief amid indications that the Donald Trump presidency may not immediately trigger a trade war.
Shrugging off pessimism in the early hour of trade, the indices gained strength as the day progressed. Bulls already badly mauled by bears in the recent months gained confidence with the progress of the day.
The bulls came to the street by riding heavyweights – Kotak Mahindra Bank and Wipro. Both the stocks gained from the announcement of the quarterly results.
Shares of Kotak Mahindra Bank and Wipro quickly gained over nine per cent in the early trades. Both the scrips maintained the strength throughout the trading session. Shares of Kotak Mahindra Bank gained almost a year of gains in a single day of trade on Monday.
Shares of Wipro shrugged off pessimism in the IT sector on the back of lacklustre shows of Infosys and HCL technology. Shares of Wipro, already split in 1:1 ration, are now trading at all-time high.
Nifty with the help of an all-round positive sentiment vaulted by 141 points. Bank Nifty also gained over 800 points. Sensex too closed above 77,000 level.
Telecom stocks were clearly the favourite of the traders on buying side. Shares of Tata Teleservices gained over 15 per cent. The likes of Vodafone also gained strength in the session. Tejas Networks, a telecom play, too rose sharply.
The sugar stocks have also been in demand among the traders. The market participants are expecting enhanced support prices for sugarcanes.
Sighting the upcoming Union Budget, the defence stocks climbed on Monday. The shipyards’ scrips such as Garden Reach Shipyard were in demand on Monday. The Quad meeting in Washington soon after the inauguration of the Trump presidency is bringing interest in the defence stocks.
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The railway stocks are also trending higher in anticipation of higher allocation in the Budget for the Railways. Experts are hoping that the Union Budget will stick to plan outlay expansion for the Railways in the Union Budget.
The likes of Rail Vikas Nigam, Jupiter Wagons, Titagarh Wagons, Rites Limited, and others are trending higher. The rail stocks had been badly mauled by the bears in the recent months.
Market participants have also sighted strength in the power sector stocks. The likes of NTPC and Powergrid have been seen strong on the bourses for past few days.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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