Stock Market: Tech rally in US steadies Dalal Street; value buying seen
By S Jha
New Delhi, February 9: Indian equities remained in the sideways modes after the investors were left busy in guesswork over the likely actions of the Federal Reserve and the Reserve Bank of India amid assessment that inflation is not yet tamed to full satisfaction. With the investors; time horizon shrinking to ultra-short, the US jobless data sent the Dow Jones Futures higher, which also helped in erasing the losses in the Indian indices in the last hour of the trading.
The weekly expiry on Thursday remained a tepid show for the Indian indices as the traders stayed in an indecisive state. The traders and investors continue to decipher the significance of the US Fed commentary on disinflation. Also, the monetary policy committee meeting of the RBI has left the investors guessing of the likely roadmap of the rate hikes. The state of indecisiveness put pressure on the Bank Nifty, which remained sideways, only to recover in the last hour of the trade.
Nifty and Sensex found stability and comfort in the strength of the Bajaj financial twins. Bajaj Financial Services and Bajaj Finance strongly gained on the street. There appeared the suggestion that the market has found value buying as some of the index heavyweights looked to have entered into highly sold zones. The Bajaj financial twins have been hammered, and they rebounded from sharply sold out positions. Similarly, Divi’s Laboratory, which had been investors’ favourite for years, was decimated, as the scrip came down to the level of Rs 2800, which again looked in a highly sold zone. The scrip also rebounded. Similar action was seen in Asian Paints. Both Divi’s laboratory and Asian Paints had been punished by the investors following their quarterly results.
The Dow Jones was trading higher in the afternoon trade, reacting to good quarterly results by some of the tech companies, and also on account of the jobless data. The tech rally in the US is also nudging the Indian IT scrips to trade firmly. Infosys, as stated earlier, has been trending up, and the IT behemoth was again the leader of the industry. The foreign institutional investors sold a net of Rs 145 crores on Thursday. The FIIs were seen to be shorting the market, but the traders are keeping their fingers crossed if the foreign fund houses would scale down shorting the Indian equities. The Adani Group of Companies remained under stress following the MCSI review of the listed firm on the back of the report of the Hindenburg Research.
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