India Finance News

Taking stock | Banks, financials lift Sensex, Nifty a percent higher

Powered by banking stocks and positive global cues, benchmark indices Sensex and Nifty started the January futures and options series with strong gains.

PSBs logged strong gains ahead of FM Nirmala Sitharaman’s meeting with PSU bank chiefs on December 28.

Reserve Bank of India’s decision to buy Rs 10,000 crore worth of the current benchmark 10-year bond on 30 December while selling four bonds maturing in 2020 for an equivalent amount also aided the banking stocks. Earlier this week, RBI had conducted a similar open market operation and purchased securities worth Rs 10,000 crore and sold securities worth Rs 6,825 crore.

“State- run banks helped market to trade higher after consecutive days of weakness. Another announcement of bond sale next week from the central bank lifted the financial stocks higher while positive sentiments in global markets on easing trade concerns fuelled a broad based rally,” said Vinod Nair, Head of Research at Geojit Financial Services.

Nair added that investors will stay focused on continuity of government policies and given liquidity is solid, momentum is expected to shift from premium stocks to value stocks.

Sensex settled 411 points, or 1 percent, higher at 41,575 while Nifty shut shop at 12,246, up 119 points, or 0.98 percent. BSE Midcap and Smallcap indices closed 0.87 percent and 0.84 percent higher, respectively.

Top Nifty gainers – Coal India, Axis Bank, Bharat Petroleum Corporation and State Bank of India.

Top Nifty losers – Yes Bank, Wipro, Bharti Infratel and Britannia Industries

Stocks & Sectors:

Barring BSE Consumer Durables (down 0.13 percent) all sectoral indices settled in the green on BSE. Energy, Finance, Telecom, Auto, Bankex, Capital Goods, Oil & Gas, Power and Realty indices logged gains of over a percent.

Long Buildup – Page Industries, MRF, Bank of Baroda and Punjab National Bank were among stocks where long buildup was seen.

Short Buildup – Vodafone Idea, Yes Bank, Jindal Steel and Wipro were among stocks where short buildup was seen.

Stocks in the news:

Share price of Allahabad Bank zoomed over 8 percent after the government released fresh capital infusion fund of Rs 2,153 crore for the bank.

Shares of HG Infra Engineering surgged over 8 percent after the company was declared lowest bidder by the National Highways Authority of India (NHAI).

GPT Infraprojects share price fell almost 7 percent after CARE downgraded rating of the company’s long-term bank facilities.

State Bank of India (SBI) share price added over 2 percent after research house Citi maintained buy call and raised the target price.

UCO Bank stock added over 2 percent after the company received funds from the Central Government.

The share price of PAGE Industries jumped nearly 6 percent after ICRA reaffirmed ‘stable’ ratings on the bank facilities of the company.

Technical View:

Nifty rebounded sharply on December 27 after witnessing correction in the last couple of sessions. This shows that the underlying tone for the market continues to be bullish, said experts.

Participation was seen in the broader market as well, which augurs well for the overall rally in the market.

“On the weekly chart, Nifty has formed an inside bar. The breakout level for the bar pattern is at 12,294. So, traders can initiate a fresh long position once the swing high of 12,294 gets taken out. On the higher side, 12,350-12,400 will be the key short-term target area to watch out for. On the flip side, the support zone now shifts higher to 12,150-12,100,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas.

Three levels: 12,158 | 12,259 | 12,294Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
Source: moneycontrol

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