Informist, Thursday, Oct 14, 2021
By Joe Milton and Abhishek Saini
MUMBAI – Strong buying in frontline banking stocks today helped offset impact of profit booking in information technology companies and ensured Nifty 50 index sustained and closed above 18300 points.
HDFC Bank accounted for most of the gains in the benchmark indices, largely due to a positive bias ahead of Jul-Sep earnings, due on Saturday. The India’s largest private lender is expected to report a healthy loan growth and a lower provisioning.
Shares of HDFC Bank gained over 3% and touched a record high of 1,690 rupees. Since the credit demand in the economy is picking up, analysts expect top quality banking stocks to gather strength.
Shares of ICICI Bank, State Bank of India, and IndusInd Bank ended 2-3% higher. Buying in frontline banking stocks pushed Nifty Bank 2% higher, touching its all-time high of 39375.05 points. The index ended the week with over 4% gains.
Led by gains in the banking stocks, Nifty 50 index hit the crucial 18350 points, but ended off highs at 18338.55 points, up 1%. BSE-Sensex ended 0.9% higher at 61305.95 points, after touching its record high of 61353.25 points.
Domestic equity indices have gained over 2% this week.
“Since there are no known triggers for a sharp correction in the short run, the market momentum continues to be strong, said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services. The exuberant retail investors are likely to drive up the markets further even though seasoned investors are worried about the excessive valuations, he added.
Apart from the banking stocks, gains in ITC and Larsen & Toubro also helped Nifty 50.
Shares of ITC hit a near two-year high of 261.85 rupees after reports said that Amazon may invest in its agriculture division. Tracking the rise among the sectoral peers, shares of L&T scaled their lifetime high of 1,819.70 rupees and closed 2.1% higher.
Shares of Hindustan Zinc surged 6% as global zinc prices surged to a 14-year-high after one of the world’s largest zinc producer Nyrstar decided to halve its output as energy prices in Europe soared. Among other metal companies, Hindustan Copper, Jindal Steel & Power, and Vedanta ended 3-5% higher.
Positive sentiment on better-than-expected the September quarter earnings by Wipro, Infosys, and Mindtree spilled over to its peers as well. However, profit booking led to technology stocks ending off their day’s high.
Shares of Tata Motors fell almost 2% during the day due to profit booking and closed at 497.60 rupees. However, Tata Motors DVR surged over 10% during the day but came off highs and closed 4.3% higher at 247.65 rupees.
The gains today were broad-based as small-cap and mid-cap indices too ended 0.5-1.0% higher.
* Among Nifty 50 stocks, 34 rose and 16 fell
* Among Sensex stocks, 21 rose and 9 fell
* On the NSE, 992 stocks rose, 997 fell and 60 were unchanged
* On the BSE, 1,703 stocks rose, 1,655 fell and 140 were unchanged
* Nifty IT: Up 1.3%; Nifty Bank: Up 1.83%; Nifty Auto: Down 0.59%
BSE National Stock Exchange
Sensex: 61305.95, up 568.90 pts (0.94%) Nifty 50: 18338.55, up 176.80 pts (0.96%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 61353.25 (Oct 14) : Lifetime High: 18350.75 (Oct 14)
Record Close High: 61305.95 (Oct 14) : Record Close High: 18338.55 (Oct 14)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
Edited by Akul Nishant Akhoury
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