Stock Market witnesses fund-based heavy bottom lifting
Image credit X @AshwiniMahajan
Bank Nifty trends amid heavy buying in frontline banking stocks
By S Jha
New Delhi, June 20: Fund houses have been in action on the street for the past few days. Heavy buying was seen in select frontline stocks yesterday.
Indices are likely to react to the fund-based buying in the Thursday session. Sensex and Nifty are likely to open on flat to positive notes on Thursday morning.
The foreign and the domestic institutional investors heavily bought into the equity cash market yesterday. Both set of fund houses matched their scales. Together, they pumped over ₹1500 crores in the cash market.
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The action was seen in the private banking counters. There was an almost secular rally in the private bank stocks on Wednesday.
Defying the usual expiry day trading action, Bank Nifty went trending yesterday. After initial consolidation, Bank Nifty went soaring in the second half of the day.
The ICICI Bank showed early signs of the impending trending move in the banking counter. The private bank took the lead to put the Bank Nifty on firm feet.
The HDFC Bank soon joined the ICICI Bank in action. The HDFC Bank, as per market participants, has been showing strength above the ₹1600 levels.
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Erasing losses in the aftermath of the merger with the HDFC, the HDFC Bank went trending to touch the levels of ₹1669 at one point of time.
The likes of Axis Bank, IndusInd Bank, Kotak Mahindra Bank, and the State Bank of India also joined the action on the street.
The secular rally in the banking stocks sent the Bank Nifty at one point of time soaring with gains of almost 1500 points.
The market participants claim that the fund houses bought into the banking stocks. Amid search for value buying, the banking stocks are being seen attractive by the market participants.
But the defence stocks which had been trending for past few months took breather yesterday. The shipyards and other defence stocks reported cuts of about five per cent.
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While the Bank Nifty was trending, the Nifty showed two-faced action yesterday. The 50-stock index oscillated in a narrow band.
The market participants claim that the indices may be struggling in the congestion zone. In the absence of decisive global and domestic cues, the indices may consolidate.
The IT pack also showed signs of life yesterday. The likes of Infosys, HCL Technology, and Wipro were strong.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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