Informist, Monday, Oct 18, 2021
By Vaibhavi and Vivek Kumar
MUMBAI – Benchmark equity indices moved higher for the seventh session in a row today as bulls in the market were undeterred by concerns over valuations amid robust earnings and economic recovery prospects.
While the gains were broad-based, metal companies spearheaded the rise on the back of positive earnings expectations and elevated global metal prices.
The Nifty Metal index rose nearly 4% with Hindalco Industries, Hindustan Copper, Hindustan Zinc, National Aluminium Co and Vedanta jumping 5-13%.
Robust earnings by US major aluminium producer Alcoa Corp fuelled the rise in domestic aluminium companies, which was supported by high base metal prices.
Following the robust outlook for aluminium companies, two major brokerage firms, Credit Suisse and JP Morgan Chase, upgraded their ratings on Vedanta’s stock, which also aided the gains in the company.
With this, the headline Nifty 50 and Sensex touched fresh lifetime highs of 18543.15 points and 61963.07 points, respectively, before closing 0.8% higher at 18477.05 points and 61765.59 points.
India is at the cusp of a multi-year growth cycle where several things are falling in place at the right time with the government’s output-linked incentive scheme and divestment, said Ashish Chaturmohta, director-research, Sanctum Wealth Management. Chaturmohta expects India to gain both from domestic demand and strong exports.
Apart from metal companies, banks and information technology companies topped the list of gainers today.
Shares of information technology companies continued to gain today as robust Jul-Sep earnings from the companies and a strong outlook aided gains in the stocks.
Shares of Infosys jumped 4.5% and hit a lifetime high of 1,799 rupees intraday, while those of Tata Consultancy Services, Mphasis and Tech Mahindra jumped 1-4%.
However, HCL Technologies closed over 2% lower and also hit its lowest level in a month as the company’s underwhelming performance in its products business kept its revenues for the September quarter below expectations. This led to analysts lowering their earnings estimates for 2021-22 (Apr-Mar).
Meanwhile, the Nifty Bank index rose for the seventh consecutive session today as investors hoped for strong Jul-Sep earnings from the companies after sector major HDFC Bank’s good numbers.
The bank stocks are showing a good breakout and hence gains in the Nifty Bank index may continue further towards 41300 points level, Chaturmohta said.
The sectoral index closed 0.9% higher at 39684.80 points with Axis Bank, State Bank of India and ICICI Bank rising 1-3%. Shares of HDFC Bank erased their opening gains and ended 1% lower amid profit booking.
Even among banks, public sector banks witnessed sharp gains today on hopes of quicker privatisation following Air India’s divestment, which continued to propel buying in the stocks.
The broader market also witnessed good buying today with small-cap and mid-cap indices rising 0.7-1.6%.
* Among Nifty 50 stocks, 32 rose and 18 fell
* Among Sensex stocks, 17 rose and 13 fell
* On the NSE, 1,035 stocks rose, 995 fell and 66 were unchanged
* On the BSE, 1,830 stocks rose, 1,616 fell and 178 were unchanged
* Nifty PSU Bank: Up 4.0%; Nifty FMCG: Up 0.5%; Nifty Pharma: Down 0.90%
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BSE National Stock Exchange
Sensex: 61765.59, up 459.64 pts (0.8%) Nifty 50: 18477.05, up 138.50 pts (0.8%)
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S&P BSE Sensitive Index Nifty 50
Lifetime High: 61963.07 (Oct 18) : Lifetime High: 18543.15 (Oct 18)
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): 61963.07 (Oct 18) : 2021 High (intraday): 18543.15 (Oct 18)
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)
End
Edited by Patricia Hou
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