India Stocks Review: Indices clock weekly gains aided by IT cos

Informist, Friday, Nov 12, 2021

By Dhanya Nagasundaram and Joe Milton

MUMBAI – After witnessing losses for three-straight sessions, markets today gained strength on renewed buying interest in the shares of frontline information technology and financial majors.

“There was a span of time when markets witnessed profit booking post earnings, and funds were moving towards primary market. Since, these events are coming to an end, the funds are coming back to the stock markets and the information technology sector is the first one to pick up because digitisation is a big theme,” said Vinit Bolinjkar, the head of research at Ventura Securities.

Today, the gains were more prominent in the frontline sector than the broader market. Mid- and small-caps underperformed on a relative basis, despite a major rejig by MSCI.

The Nifty 50 index touched an intraday high of 18123.00 points today, and closed 1.3% higher at 18102.75 points. Correspondingly, the BSE-Sensex closed 1.3% higher at 60686.69 points, after touching the day’s high of 60750.72 points.

Despite weakness during the last four sessions, the benchmark indices managed to end the week about 1% higher.

The upside for the benchmark index was capped by continued weakness in the financial stocks throughout this week. Nifty Bank index managed to snap its four-day losing streak, but ended the week 2.1% lower.

Today, the Nifty Bank index ended at 38733.35 points, up 0.5%. “Recent corrections in financial services stocks attracted investors as improved outlook for the sector led by pickup in economic activities and improvement in asset quality augurs well,” said Binod Modi, the head-strategy at Reliance Securities.

On stock-specific front, shares of Mahindra & Mahindra were the top performers of the week with over 7% gains. The stock was in a steady uptrend for the last four sessions as the company reported strong Jul-Sep earnings.

Today, the stock ended 1.4% higher at 937.80 rupees, and analysts expect the stock to climb further, towards 950 rupees in near term.

Shares of InterGlobe Aviation was in focus as they surged over 7% and touched an all-time high of 2,324.95 rupees following reports that management expects the company to turn profitable soon.

Shares of Vodafone Idea rose in anticipation of better earnings, and it sustained the gains as Jul-Sep consolidated loss was lower than what analysts had expected. The company’s average revenue per user of 109 rupees was in line with the market’s expectation. Shares of Vodafone Idea closed 4.5% higher at 10.30 rupees today.

On the earnings front, shares of 3M inida, Bajaj Electricals, Kaveri Seed Company, Avanti Feeds, and KNR Constructions fell today on weak Jul-Sep earnings, while those of Max healthcare Institute, NBCC India, Hindalco Industries, and Finolex Cabels rose on robust earnings.

* Among Nifty 50 stocks, 43 rose and 7 fell

* Among Sensex stocks, 25 rose and 5 fell

* On the NSE, 943 stocks rose, 1,030 fell and 81 were unchanged

* On the BSE, 1,663 stocks rose, 1,650 fell and 151 were unchanged

* Nifty Realty: up 1.65%; Nifty Energy: up 1.32%; Nifty Pharma: up 0.41%

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BSE National Stock Exchange
Sensex: 60686.69, up 767 pts (1.28%) Nifty 50: 18102.75, up 229.15 pts (1.28%)

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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)

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End

Edited by Mainak Moitra

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Source: Cogencis