Bulls nail it, Sensex up by 342 points

Last Updated: Mon, Feb 25, 2019 18:40 hrs
Bull Sculpture (Image Courtesy: Bloomberg)

Markets were anxious on the eve of the trading session on Monday. They feared over the prospects of trade war and lack of any interesting global cues. Pundits had been anxious and said that the expiry of F&Os on Thursday could be another blow for the markets.

The forecast was all negative. But the markets surprised all. To conclude, it was a happy ending Monday session.

The thirty scrip sensitive Sensex gained 341.90 points or 0.95% to end the day at 36.213.38. The day's high was 36,242.18. The 50 point NSE Nifty was up by 88.45 or 0.82% up at 10,880.10.

Overall, the session saw some active buying in technology and private banking sectors. There was action on Auto counters as well.

On the Sensex, stocks of Yes Bank Limited, posted a handsome gain. Yes Bank gained 3.24% with a volume of just over 4.1 million shares being exchanged. Yes Bank closed at a price of Rs 229.15 per share.

Other Sensex listed stocks to sizzle were technology stocks such as TCS (up by 3.07%), Infosys (2.94%), HCL Technologies (1.9%). HDFC Bank, Indusind Bank and ICICI gained over 1% in the trading session.

Seven stocks, namely, Reliance Industries Limited (-0.04%), Power Grid Corporation of India Limited (-0.05%), Larsen & Toubro Limited (-0.2%), State Bank of India (-0.2%), Oil & Natural Gas Corporation Limited (-0.2%), Asian Paints Ltd (-0.23%), and Coal India Ltd (-0.37%) traded in the negative.

Among sectoral specifics, Nifty IT gained by 2.03%, Nifty Auto and Nifty Private bank by 1.12% each.

On the broader side, the large cap and broad cap stocks had a good outing although BSE Small cap and small cap select indices too were in the green.

Within Auto sector on the BSE, the top gainers in the session were Sundaram-Clayton Limited(6.37%), Wabco India Ltd(2.65%), Kirloskar Oil Engines Ltd(1.87%), Exide Industries Ltd(1.78%), Balkrishna Industries Limited(1.71%), Ashok Leyland Ltd(1.53%), Bosch Ltd(1.43%).

Ashok Leyland's counters had the most impressive volumes with a total trading volume of 1.5 million shares changing hands.

On the banking side, besides Yes Bank, IDFC Bank (up by 0.66%, volume of 1.2 million shares), Punjab National Bank (up by 0.34% 0.8 million shares) were the top gainers.

BSE technology indices made the best of the gains in the trading session. S&P BSE IT was up by 2.46% while S&P BSE-TECK was up by 2.11%. Infosys was up by 2.94% with a volume of approximately 298,000 shares being exchanged. This was the most voluminous stock traded on technology counters.

Scrips such as Tata Consultancy Services Limited(3.07%), Cyient Ltd(3.07%), Infosys Ltd(2.94%), Oracle Financial Services Software Ltd.(2.03%), made the best gains in the session.

At close of trading hours, the Dollar was trading at levels of below Rs 71. Traders believe that this may have eased the counters for technology scrips. Pharma stocks too made a good outing.

Sun Pharma Advanced Research Company(3.81%), Alembic Pharmaceuticals Ltd(3.48%), Jubilant Life Sciences Ltd(2.64%), Sanofi India Ltd(2.42%), Torrent Pharmaceuticals Ltd(2.28%), Abbott India Limited(1.91%), Divi's Laboratories Ltd(1.66%) made the most gains.

Dr. Reddy's made a gain of 1.17% with a volume of 0.14 million shares.

The real estate sector received a policy update- the GST council of ministers reducing GST on under-construction homes on Sunday. Realty stocks gained by approximately 2%, however that optimism did not last until the trading session.

Realty, media, PSU bank were top losers. Among the losers were also scrips such as Adani Ports, RCom, Jet Airways, and Infratel.

Deepak Jasani, Head for Retail Research at HDFC securities explained in a note that Adani ports came under selling pressure (closed down 8.4%) on announcement of a cash buyout of group firm Adani Logistics from Adani Enterprises at an EV valuation of Rs.1662 cr. "Shareholders of Adani Ports were not sure about how far this would help minority shareholders of Adani Ports while providing cash to Adani Enterprises to meet its obligations."

Jasani also added "Technically, with the Nifty remaining in a short term uptrend, traders will need to watch if the index can now hold above the immediate supports of 10808 for further upsides in the near term. Immediate resistance is at 10925."

Although the markets are cheering the outcome of Monday's trading session, stability remains a concerning area. Experts believe that premium valuation will be based on the outcome of Q3FY19.