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Informist, Tuesday, Oct. 8, 2024

By Alina Geogy

MUMBAI – Benchmark indices snapped a six-day losing streak Tuesday, owing to gains in select heavyweight stocks, supported by continued buying interest from domestic institutional investors. The bears took a breather after sustained selling pressure over the last six sessions, where the key indices lost around 6% each.

The recovery in the market was merely a bounce-back from lows, especially since stocks were in oversold territory of late, Ajit Mishra, senior vice-president of technical research at Religare Broking, said. The Nifty 50 closed at 25013.15 points, up 0.9%, while the BSE Sensex closed at 81634.81 points, up 0.7%.

Nearly 78% of all stocks traded on the NSE Tuesday ended higher, while only 20% ended down. With this, the market breadth, which was leaning in favour of the bears recently, reversed. The broader market indices outperformed the benchmark ones, with the Nifty mid- and small-cap indices rising around 2% each.

Investors were also glued to the results of the Assembly elections in Haryana and Jammu and Kashmir. The Bharatiya Janata Party won a majority in the 90-member Haryana Assembly elections, for the third term in a row. In Jammu and Kashmir, however, the ruling BJP was pipped by an alliance between the National Conference and Congress parties.

There was some market buzz that the BJP's hat-trick win in Haryana's state elections could have triggered buying in public-sector enterprises, such as defence and railways. Shares of railway-linked firms Rail Vikas Nigam and Indian Railway Finance Corp gained nearly 8% and 5%, respectively, while those of defence firms Garden Reach Shipbuilders & Engineers and Cochin Shipyard gained 4-8%. Shares of housing finance company Housing & Urban Development Corp also gained nearly 9%.

Reacting to cues from global markets, market participants were disappointed after a lack of fresh stimulus measures at China's National Development and Reform Commission conference earlier in the day. Major Chinese indices, which were sharply up in early trade after a week-long market holiday, ended off highs as investors booked profits post the conference.

Back home, sentiment towards metal stocks turned negative after the much-awaited briefing failed to provide any follow-up on the recent stimulus measures in China, a research analyst at a domestic brokerage firm said. Shares of metal companies, such as Tata Steel, JSW Steel, and Hindalco Industries, fell as much as 3-4% during the day. The Nifty Metal index fell around 1% and was the sole sectoral index in the red.

Shares of heavyweights Reliance Industries and HDFC Bank ended around 2% higher each, contributing around 100 points to the overall 217.40-point gain in the Nifty 50. Shares of RIL snapped a five-day losing streak, while HDFC Bank rose after six consecutive days of losses, similar to the benchmark indices. Besides these two stocks, shares of Trent and Mahindra & Mahindra also supported the rise.

Grabbing the limelight among Nifty 50 constituents, shares of Tata Group-owned retailer Trent rose 8% to hit a fresh record high. Brokerage firm Morgan Stanley reiterated its bullish view on the stock with an 'overweight' rating following reports about the company's foray into the affordable beauty segment with the launch of 'Zudio Beauty'. The company also launched a brand 'Pome' for lab-grown diamond jewellery, as per media reports.

Shares of Mahindra & Mahindra gained over 3% after global brokerage firm CLSA shared positive commentary about potential growth in the company's sports utility vehicle and tractor segments, as per news reports. It upgraded the rating on the stock to 'outperform' from 'hold' earlier and hiked the target price by 28%. Shares of defence component manufacturer Bharat Electronics ended nearly 5% higher after the state-owned firm said it secured orders worth over INR 5 billion.  
 

* Of the Nifty 50 stocks, 36 rose and 14 fell

* Of the Sensex stocks, 18 rose and 12 fell

* On the NSE, 2,234 stocks rose, 573 fell, and 78 were unchanged

* On the BSE, 3,024 stocks rose, 923 fell, and 98 were unchanged

* Nifty Media: up 3.1%; Nifty Healthcare: up 1.7%; Nifty Metal: down 0.9%

BSE                                               NSE

Sensex: 81634.81, up 584.81 points or 0.72%       Nifty 50: 25013.15, up 217.40 points or 0.88%

End

Edited by Manisha Baxla

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