Stock Markets rolls on steady rails; bluechips lag small peers

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By S Jha

New Delhi, August 28: Indices on Monday shrugged off inflation fears to stage a smart recovery to bring the bull, who have been battered in the last few days, back in the game. Even while the US Federal Reserve remains hawkish, talking of more rate hikes and there being resonance with a few members of the monetary panel committee of the Reserve Bank of India, inflation remains the top concerns for the investors.

Market participants claimed that the HDFC Bank was hanging at a crucial position and a slip from there could have taken the heavyweight scrip into an unchartered territory. But the HDFC Bank staged a recovery and also pulled both the Bank Nifty and Nifty along with on higher trajectories. Post-merger, the HDFC Bank has been the most laggard of the banking stock, showing no sign of life on the bourses. But the scrip gained strongly and also provided leadership to the indices.

Amid the brouhaha over the private firms supplying components to Chandrayaan-3, it took a full page advertisement by Larsen and Toubro to tell the world that it had provided critical parts to the Moon mission. L&T for past few weeks has been stressing on the company being engaged in high-tech sector. Investors showed confidence in the scrip as it zoomed to briefly touch the level of Rs 2700. It may be noted that L&T is slowly and steadily making new highs, while the company is taking a pivotal position in India’s bid for defence self-reliance, while being a construction major.

But it was a day of the rail stocks, and anything related to railways was just flying on the bourses. Following in the footsteps of Titagarh Wagons, the likes of Texmaco Rail, RITES Limited, RailTel, Rail Vikas Nigam Limited, and others made smart gains on the bourses. Under PM Gati Shakti Mission, the Central government is now prioritizing the railway projects, while Prime Minister Narendra Modi simultaneously laid foundations for the redevelopment of stations across the country.

There appeared strong buzz in the telecom space also as Tata Teleservices and MTNL logged gains of over eight per cent each. Tata Teleservices, it may be recalled, was a case of pump and dump show in the days after the outbreak of the Covid-19 pandemic. While Nifty has claimed the level of 19300 even while experts are warning of lowers levels in the coming days, the indices are seen to be in sideways modes, with sell on the rise being the favourite theme of the traders.