Stock Market: Shock pause sends bourses climbing; bulls eye 18k on Nifty
By S Jha
New Delhi, April 11: Heavyweights are carrying indices on their shoulders more often in the Indian equity space. HDFC bank and Reliance Industries brought the bourses from the abyss, while Kotak Mahindra Bank got to a cracking start on Tuesday following the positive news flow of its MSCI weightage rejig in favour.
Among the private banks, Kotak Mahindra Bank has been the most laggard. The scrip has remained a disappointment for over two years. It has been trading in a very narrow band. But Kotak Mahindra Bank spurted by almost five per cent on Tuesday on the back of a positive news flow. Since it’s a heavyweight constituent, the Bank Nifty went trending to climb by over 500 points, while also helping Nifty and Sensex make handsome gains.
The rise in Kotak Mahindra Bank rubbed positively on ICICI Bank, SBI and Axis Bank, which also gained confidence during the session. The day was also marked by the unveiling of the global economic outlook by the International Monetary Fund, which had much negative to speak about the developing countries, the Global South.
But the sentiments among the market participants is clearly bullish. This is backed by Dow Jones also rising steadily, as the index was up by over 164 points in the afternoon trade.
Titagarh Wagon, one of the most laggard stocks until a few years ago, has been on a roll, having already risen by 10 times in the last 30 months. TItagarh Wagon-BHEL consortium has bagged the contract to supply 80 Vande Bharat train sets at a cost of Rs 120 crores each. With the Railways going aggressive in inducting Vande Bharat trains, the companies engaged in the making of the self-propelled trains are on the radar of the investors for once in a decade opportunity to ride the opportunity of a sector rerating.
Nifty closed the day at 17722, above the psychological level of 17700. The index will be approaching the weekly expiry on Thursday after the bull run of at least three trading sessions. The market participants have begun talking of 18000 level, while keeping fingers crossed on the timeline.
On the positive side, the institutions are not bearish on the market, as the foreign institutional investors have been marginally buying into the markets for the last few days.
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