Stock Market sniffs onset of NAV rally -

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Reliance Industries, Maruti lead gains on stock market

By S Jha

New Delhi, March 27: Sensex rose by over 500 points on Wednesday. Nifty also made decent gains of 100 points. Bank Nifty was firm in the last half an hour of the trade. The all-round gains on the stock markets were made by a firm rally in the frontline stocks.

Sensex is now staring at an all-time high peak of 74245. Nifty is still 300 points away from its all-time high. Bank Nifty remains a laggard among all the indices. The ghost of the March closing is now getting behind the investors. Just one trading day is now left in the current month.

Reliance Industries trended throughout the day after a rerating by brokerages. They have given targets of the index behemoth of Rs 3400. Reliance Industries almost touched Rs 3000 a share price in the Wednesday session. This is another leg of the rally in the index heavyweight. In the last rally, it had scaled the psychological level of Rs 3000 a share. Afterwards, it had gone under the hammer after the selloff knocked off the stock market in the current month.

Maruti gave a strong support to the indices by scaling an all-time high. The automobile leader extended gains from last week. During the day, Maruti almost touched the level of Rs 12700. The rally in Maruti was firm. It left behind the fancied Tata Motors and Mahindra and Mahindra by showing intense steam on the street.

Bajaj Auto once proved that it is the outperformer in the market. The share price of the two-wheeler giant went as high as Rs 9280 during the day. It also has raced far ahead of the peers, Hero Motors and Eicher Motors.

Larsen and Toubro once more showed signs of strength on the street. Bagging contracts of the large size in excess of Rs 5000 crores, the construction giant is fast emerging as a market outperformer. It was again in big demand as the share price went above the level of Rs 3700.

The market participants claim that the street was expecting a NAV rally to commence from the last day of the trading session of this quarter. They argue that NAV (Net Asset Value) rally means fresh allocations by the foreign institutional investors and the mutual fund houses to the equities. The next few days may give clues to the claims of a NAV rally on the street. Indices have been sideways for the past few days.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)