Stock Market: Steady fund action fuels bull rally; small is big for banks

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By S Jha

New Delhi, July 26: After a short retracement, the indices resumed the bull charge on the bourses to take the Bank Nifty and the Nifty on higher levels. The fund actions remain robust to add further fuel to the bullish march of the bourses.

On the back of the International Monetary Fund (IMF) upgrading the economic growth outlook of India, revised to 6.1 per cent in the current fiscal, gave further momentum to the bourses. Even while the spectre of higher food inflation looms over the inflation prospects, the bourses continue to stay strong with steady fund flows.

The foreign institutional investors reported a net buy of over Rs 900 crores in the equity cash markets. The domestic financial institutions also bought a net of Rs 400 crores in the cash market. The retail participation also remains steady in the market even while the indices are trading at record highs.

While the marker participants are betting on a rally in the PSU stocks, particularly the engineering and the banking scrips, Punjab and National Bank continues to lead the pack, gaining another three per cent on Wednesday. The State Bank of India too came to the green territory after the recent spurt, which took the scrip from the level of Rs 560 to Rs 620, with a minor retracement in the last few days.

Tata Motors has taken the leadership position among the auto scrips, edging past Mahindra and Mahindra. Tata Motors was buzzing on Wednesday amid news report of the delisting of the DVR scrip, which had separately been buzzing.

Larsen and Toubro, one of the underrated construction behemoth led the show on Wednesday, being the top gainer. It had reported its quarterly result yesterday, which came above the estimates of the street. It also has over Rs 4 lakh crore of order books.

RBL Bank was buzzing on Wednesday after news report of Mahindra and Mahindra checking into the bank with over three per cent share. There are reports that Mahindra and Mahindra will be further raising the stake in RBL Bank.