Informist, Tuesday, Oct 26, 2021
By Dhanya Nagasundaram and Ankika Biswas
MUMBAI – A strong recovery across frontline sectors and index-heavy Reliance Industries, coupled with further gains in the shares of financial companies, helped benchmark equity indices retain the uptrend from Monday and close with strong gains today.
Firm global cues also aided the risk-on sentiment among investors. This, coupled with a broad-based recovery, helped the Nifty 50 briefly surpass the 18300-point mark in the final hour of trade.
The strong appetite was also visible in the broader market, which helped mid-cap and small-cap stocks stage a good recovery after falling for five consecutive sessions due to valuation concerns. The fact that all the segments witnessed decent buying interest was cited by analysts as a healthy sign for the market.
Today, the Nifty 50 closed at 18268.40 points, up 0.8%, after rising to 18310.45 points during the day. The Sensex closed 0.6% higher at 61350.26 points, after touching the day’s high of 61497.71 points.
Tech Mahindra’s robust revenue growth in Jul-Sep on the back of pent-up demand prompting earnings upgrades ensured renewed buying interest in the information technology space. With most of its constituents ending in the green, the Nifty IT index managed to snap a four-day losing streak. The sectoral index closed 0.5% higher at 35162.35 points, while shares of Tech Mahindra closed nearly 3% higher at 1,563.30 rupees.
Another space that witnessed strong buying interest was metals, as investors picked up stocks at lower levels. The Nifty Metal index closed nearly 3% higher at 5830.65 points, after falling for five straight sessions.
“With China slowing down and vacating global metal space, Indian metal companies have an advantage in terms of cost structure,” said Pankaj Pandey, head of Research at ICICI Securities, “One of the key commodities coking coal prices have been on the uptrend and key companies like JSW Steel are looking to pass on this price thereby preventing the volatility in their earnings.”
Meanwhile, on the earnings front, several companies are facing margin pressures, but analysts say these headwinds may subside in the coming quarters.
While these have triggered some downward revision in earnings estimates, they are not at the overall index level because some sectors such as banking are doing quite well, as their current growth is better than expected, along with improved asset quality, Pandey said.
Shares of Kotak Mahindra Bank closed 3% higher after rising to an all-time high during the day due to strong credit growth and improvement in asset quality in Jul-Sep compared to the previous quarter.
Robust Jul-Sep also earnings lifted shares of Jindal Stainless, Cera Sanitaryware, Home First Finance, and Quick Heal Technologies, among others.
Shares of Tata Motors closed 6% higher, as strong growth prospects for the electric vehicles business and a 10% fall in the stock from its multi-year-highs hit earlier this month led investors to buy the stock on dips today.
Shares of Zee Entertainment Enterprise surged 4% after the Bombay High Court ruled in favour of the company and barred investor Invesco from calling for an extraordinary general meeting. In another development, Zee Entertainment cancelled the board meeting scheduled for Wednesday to consider its Jul-Sep earnings due to lack of quorum.
Meanwhile, shares of ICICI Bank closed over 1% lower as investors rushed to book profits after the sharp gains in the stock on Monday following the bank’s robust earnings.
* Among Nifty 50 stocks, 39 rose and 11 fell
* Among Sensex stocks, 20 rose and 10 fell
* On the NSE, 1,526 stocks rose, 453 fell and 63 were unchanged
* On the BSE, 2,218 stocks rose, 1,056 fell and 145 were unchanged
* Nifty Metal: Up 2.7%; Nifty Auto: Up 2%; Nifty Bank: Up 0.1%
BSE National Stock Exchange
Sensex: 61350.26, up 383.21 pts (0.6%) Nifty 50: 18268.40, up 143 pts (0.8%)
S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
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 Avishek Dutta
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