Markets gain after three-day losing streak; L&T, Mahindra and SBI top gainers

Benchmark indices ended in the green on Thursday, after a three-day losing streak, on account of expectations of a positive Budget. The Sensex gained 271.02 points, led by banking and auto stocks, to close at 41,386.40 points. The broader Nifty50 rose 0.61% to close at 12,180.35 points. The broader markets also gained, with mid and smallcap indices outperforming the benchmarks.

At an index level, Larsen &Toubro (L&T), Mahindra & Mahindra and State Bank of India (SBI) were the top gainers. Shares of L&T surged 2.98% to close at Rs 1,332.80 a piece, following its quarterly results on Wednesday. “ Large near-term pipeline improves case for double-digit revenue growth in FY2021. Key infrastructure margin would have also turned the corner by then,” said Kotak Institutional Equities in a note on L&T. Index heavyweights such as Infosys, Larsen & Toubro as well as ICICI Bank contributed the most to the gains in the Sensex.

On the other hand, Tech Mahindra, Tata Consultancy Services and Bajaj Auto were the biggest losers. The Tech Mahindra scrip shed 1.19% to close at Rs 768.85.

Elaborating on the gains, Sanjeev Hota, head of research, Sharekhan by BNP Paribas, said: “Despite weak global cues, Nifty has managed to close in a positive zone after three days of correction, led by smart recovery in some front-end companies, also expectation of some positive announcement from the Budget kept the market sentiments in positive territory.”

Bank Nifty gained 1%, with Yes Bank, SBI and Axis Bank shares gaining the most. Sectorally, BSE Capital Goods, BSE Realty and BSE Oil and Gas gained. BSE Midcap rose 1.06% and BSE Smallcap rose 0.95%.

gIf you see the trend, midcaps are outperforming the benchmark from December – it is coming from a multi-year gap. Somewhere with the frontline stocks one needs to look beyond numbers that is where you see the midcap stocks and so you will see this year as the start of a midcap rally,” added Hota.

India’s Asian peers, however, delivered a tepid performance on Thursday, with bourses in Hong Kong, China and South Korea ending in red.

Brent crude was trading at $ 62.35 per barrel, the lowest since a month and a half. “ A cautious trend will be maintained in the near-term since a lot has been factored in the market about Budget wish list and revival in earnings growth while the start to Q3 result is below par.” said Vinod Nair, head of research, Geojit Financial Services.

Source: Financial Express