Sensex | RIL: the gains of private lenders outweigh the 9% loss of the RIL; Sensex adds 144 points
Bluechip indices rotated in a wide range over the course of the day, traveling on both sides of the flat line. Thus, the India VIX volatility indicator also gained, in line with expectations. The analyst says the volatile moves will continue until the US election is clear.
The Sensex 30 stock pack climbed 143.51 points or 0.35% to 39,737.58. He ended a three-day losing streak after moving into a 650-point range. Its larger counterpart, NSE Nifty, closed at 11,669.15, up 26.75 points or 0.23%.
Market at a glance:
- RIL hits 9% after second quarter trade show disappoints investors
- ICICI Bank Peaks 6% on Stellar Second Quarter Profits; analysts see up to 66% increase
- HDFC beats Street estimates; stocks jump 5%
- Nifty Private Bank, Nifty Bank advances over 4% as SC prepares to hear moratorium case
- Market size favors losers as small caps collapse
- India VIX extends winning streak to day 4, increases nearly 2% to 25.21
- Equitas SFB sees buy after quote at a discount; shares close at Rs 32.75
The weak opening reflected the market entry into rough waters last week. However, some recovery was seen as investors showed interest in bank stocks as major players announced second quarter results, beating street estimates with a positive outlook. Plus, bank stocks are trying to price pending the positive SC verdict on the moratorium, “Vinod Nair, head of research at Geojit Financial Services.
Top 5 Clever Winners and Losers
Among the big names, IndusInd Bank was the biggest winner, up 6.45% to Rs 623.45. ICICI Bank and Axis Bank followed with gains of around 6 percent each. HDFC, Bharti Airtel, SBI, Bajaj Finance and HDFC Bank were other big winners.
On the flip side, Reliance Industries was Nifty’s biggest loser, down 8.69% to Rs 1,876. Its partially paid shares also plunged 10%. Divi’s Labs, Eicher Motors, HCL Tech, Tata Steel, TCS and UPL were the other big losers in the peloton.
“Volatility can be expected to increase in the coming days. Therefore, it is prudent to be on the defensive over the next few days and trade with tight stop losses.”
The broader market indices were mixed as Nifty Smallcap saw massive sell-offs, settling at 1.55%. Nifty Midcap rose 0.40%. Nifty 500, NSE’s largest index, rose 0.15%.
Godrej Properties, Shriram Transport Finance, Cholamandalam Investment and Finance, PVR, Century Ply and Mishra Dhatu Nigam were the main gainers in the mid and small cap indices, up 3-9%.
Edelweiss Financial Services, Dhani Services, Coforge, Just Dial, Delta Corps and Kaveri Seeds Company were the biggest losers in the larger markets, down 4-10%.
Sector-wise, Nifty Private Bank was the biggest winner, up 4.24% while Nifty Bank climbed 4.15%. Nifty PSU Bank and Nifty Financial Service grew by more than 3% each. Nifty IT was the biggest loser, down 0.88%.
The size of the market was in favor of the losers as 1,099 stocks ended in the green while 1,563 names settled with cuts. No less than 103 stocks hit 52-week highs, mostly in the small-cap space. Meanwhile, 56 names hit 52-week lows, mostly in the microcap space. Approximately 225 stocks reached upper circuit limits and 223 reached lower circuit limits.
European stocks were bought as the FTSE rose 0.91% while the French CAC and German DAX rose 1.6% and 1.86% respectively. With the exception of Indonesia which slipped 0.26 percent, all Asian markets also closed higher. Kospi and Hang Seng were the biggest winners, up 1.46% each.
Let’s prepare tomorrow:
- Moratorium case: Investors will keep an eye on the Supreme Court hearings, as any unfavorable judgment will hurt the banks.
- US Elections: The United States is expected to vote for the presidential election on Tuesday, which will be closely watched by investors.
- T2 benefits: Dabur, Muthoot Finance, PVR and Sun Pharma were among the big names that will release their figures.