Informist, Tuesday, Oct 12, 2021

By Joe Milton and Abhishek Saini

MUMBAI – Domestic equity indices were lacklustre for most of the day, but managed to eke out gains and scale record closing highs, as investors continued to shift money from information technology companies to bank stocks. 

This helped Indian equities show resilience, as inflation fears due to soaring commodity prices led to a risk-off sentiment among investors globally.

Investors continued to book profits in information technology stocks as the September quarter earnings of Tata Consultancy Services missed estimates. Shares of HCL Technologies, Tech Mahindra, L&T Technology Services, and Coforge ended 1-4% lower. The Nifty IT index was the worst performer among sectoral indices, down 0.9%. 

However, investors should remain invested in IT and even buy on declines since the demand environment for the sector remains robust, said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.

Strong buying was seen in bank stocks due to expectations of better Jul-Sep earnings, backed by strong credit growth. Within banks, investors largely favoured state-owned lenders compared to private banks. The Nifty PSU Bank index ended 3.1% higher, while the Nifty Private Bank index ended with only 0.4% gains. 

Shares of State Bank of India gained over 3.2% and touched an all-time high of 484.40 rupees. Analysts at ICICI Securities expect the stock to gain further and touch 520 rupees in the near term. 

Aided by gains in financial stocks, the Nifty 50 ended at a record closing high of 17991.95 points, up 0.3%. The BSE Sensex gained 0.3% and ended at 60284.31 points, a record closing high. 

Apart from this, the economy unlocking theme also played out ahead of the festival season as shares of consumer companies gained. Shares of Titan Co, Nestle India, ITC Ltd, Bata India, and Whirlpool of India ended 1-6% higher.

Shares of automobile companies continued their rise after two-wheeler manufacturers saw gains due to expectations of an increase in demand. Bajaj Auto, Hero MotoCorp and TVS Motor Co ended 2-4% higher. Tata Motors also rose 5%, backed by strong Jul-Sep sales numbers, lifting the Nifty Auto index nearly 1%.

The Nifty Metal index ended 1.1% higher, buoyed by aluminium companies. The top three gainers on the index were Vedanta Ltd, Hindalco Industries and National Aluminium Co, as they ended 2-6% higher after JP Morgan reportedly said it expects earnings upgrades across aluminium companies.

The market breadth was positive, as investors continued to accumulate small-cap and mid-cap stocks. All the small-cap and mid-cap indices on the NSE ended 0.5-1% higher, outperforming the benchmark index.  

Among individual gainers, Radico Khaitan soared 14% after it announced the launch of two premium products, followed by a bullish outlook by Goldman Sachs. Gaming company Delta Corp gained 5% after it reported a 95% on-year jump in revenue in Jul-Sep. 

* Among Nifty 50 stocks, 31 rose and 19 fell

* Among Sensex stocks, 16 rose and 14 fell

* On the NSE, 1025 stocks rose, 947 fell and 77 were unchanged

* On the BSE, 1,172 stocks rose, 1,573 fell and 133 were unchanged

* Nifty IT: Down 0.88%; Nifty Bank: Up 0.59%; Nifty Auto: Up 0.88%

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BSE                                              National Stock Exchange
Sensex: 60284.31, up 148.53 pts (0.25%)           Nifty 50: 17991.95, up 46 pts (0.26%) 
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S&P BSE Sensitive Index                          Nifty 50
Lifetime High: 60412.32 (Sep 27)                : Lifetime High: 18041.95 (Oct 11)
Record Close High: 60284.31 (Oct 12)            : Record Close High: 17991.95 (Oct 12)
2021 1st day close: 47868.98 (Jan 1)            : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60284.31 (Oct 12)            : 2021 Closing High: 17991.95 (Oct 12) 
2021 Closing Low: 46285.77 (Jan 29)             : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60412.32 (Sep 27)         : 2021 High (intraday): 18041.95 (Oct 11)
2021 Low (intraday): 46160.46 (Jan 29)          : 2021 Low (intraday): 13596.75 (Jan 29)

2020 Closing High: 47751.33 (Dec 31)            : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         : 2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Avishek Dutta

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