NEW DELHI: Pouncing on the opportunity to buy at cheaper valuations, investors picked up blue chips as well as midcaps with both hands on Friday, leading to a surprise rally in the domestic benchmark indices.
Stocks like ONGC, Reliance Industries, HUL, TCS and Ultratech Cements gained 10-19 per cent as investors went shopping on the first sign of recovery. Midcap stocks like Jubilant Food and Mindtree also saw heavy buying.
That helped the benchmark indices log their biggest gains in six months. BSE Sensex soared 1,627 points to 29,915 while NSE’s Nifty jumped 482 points to 8,745.
Analysts warned investors to be wary of debt-laden companies given the situation. “Excessively leveraged businesses in the discretionary space could face survival risks. One should stay away from fragile businesses and not give in to the temptation of buying more or averaging in such companies,” said Rajeev Thakkar, CIO, PPFAS MF.
Here is a lowdown of the movers and shakers of Tuesday’s session on Dalal Street:
Biggest jump in six month
The market bounceback on Friday was the biggest in six months. Before this, the biggest jump was recorded on September 20 after the government announced a steep corporate tax rate cut. A major buying spree in blue chips gave Sensex a 1,627-point lift to 29,915 while NSE’s Nifty rose 482 points to 8,745.
5th weekly close in the red
Benchmark indices closed in the red for the fifth consecutive week. Sensex fell 4,188 points for the week while Nifty plunged 1,206 points.
Midcaps lead rally
The Nifty Midcap index registered the second biggest gain in history, as it jumped 4.79 per cent to 12,641. Among the top gainers on the index were Jubilant Foodworks, Escorts, Manappuram, Mindtree and Apollo Hospitals.
Just four Nifty stocks in the red
Just four Nifty 50 stocks ended the day in the red – HDFC Bank, Adani Ports, IndusInd Bank and Axis Bank. The biggest gainer was Bharti Infratel, which jumped 22.61 per cent to Rs 152. ONGC, GAIL and HUL were among other top gainers.
All sectoral indices in the green
All sectoral indices on NSE closed with gains. Nifty IT and Nifty FMCG were the biggest gainers, up over 8 per cent each. Nifty Metal index added 7.68 per cent while Nifty Pharam index rose 4.07 per cent.
VIX 9-day gaining streak
India VIX, also known as fear gauge of the market, snapped a nine-day winning streak to end with a 7.3 per cent cut at 66.92 level.
Investors richer by Rs 6.32L cr
Total market capitalisation of BSE-listed firms rose by Rs 6.32 lakh crore to Rs 116.1 lakh crore after the end of Friday’s trade.
IRCTC to take Rs 80 cr hit
The IRCTC management said the company might take a Rs 80 crore hit in earnings due to cancellation of trains amid the coronavirus outbreak. Shares of the firm closed down 4.91 per cent at Rs 951.
YES Bank tanks 15%
Shares of YES Bank fell 14.84 per cent to Rs 45.90 as demand for the stock fell after traders covered their short positions. The stock saw selling by the largest promoter on Wednesday. The Reserve Bank of India (RBI) has given Yes Bank credit support of Rs 60,000 crore to ensure that it is able to meet its obligations to depositors.
Escorts’ sweet deal
Shares of tractor maker Escorts jumped 17.73 per cent to Rs 675.20 after the company said Japan’s Kubota Corporation will acquire 10 per cent equity stake in it.
Malaria drug makers surge
Makers of a malaria drug hydroxychloroquine saw heavy buying as doctors found it effective against Covid-19. Cadila Healthcare jumped 16.19 per cent to Rs 285, Ipca Lab 8.87 per cent to Rs 1,372 and Torrent Pharma gained 4.5 per cent to Rs 1,846. BSE Healthcare index, comprising these stocks, jumped 5.75 per cent
HDFC Bank target price cut
Shares of HDFC Bank slipped 1.39 per cent to Rs 882.40 after brokerage Sanford C. Bernstein downgraded the stock to ‘underperform’ and slashed the target price by nearly half to Rs 750 from Rs 1,400 earlier.
RIL gets promoter push
Shares of Reliance Industries climbed 11.24 per cent to Rs 1,020 after Mukesh Ambani, his wife and three children marginally raised their personal shareholdings in the oil-to-telecom major.
J&K Bank shares trip
Shares of Jammu & Kashmir Bank fell 1.78 per cent to Rs 13.80 after the market regulator Sebi exempted J&K government from making an open offer to shareholders of the bank amid a proposed equity infusion that would hike its stake in the lender by 8.95 per cent.
IDFC First CEO sells shares
Shares of IDFC First Bank dipped 0.24 per cent to Rs 20.60 after the lender informed bourses that V Vaidyanathan, Managing Director and Chief Executive Officer, sold over 2.75 crore shares on Thursday for Rs 58 crore to close an ESOP loan that he had availed.