Bulls return: D-Street defies weak global cues as banks lead market rally
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Synopsis
Kotak Mahindra Bank soared about 12% on superb Q2 show, likely inclusion in MSCI index.
The 30-share pack Sensex jumped 376.60 points, or 0.94 per cent, to 40,522.10. Its broader peer, NSE Nifty advanced 121.65 points, or 1.03 per cent, to 11,889.40.
“Bulls took the centerstage today, led by financials as Kotak Bank led from the front buoyed by MSCI review. Afternoon trade witnessed FMCG taking control ably supported by cement stocks,” said S Ranganathan, Head of Research at LKP Securities.
Market at a glance:
- Kotak Mahindra Bank soars about 12% on superb Q2 show, likely inclusion in MSCI index
- IT stocks feel selling pressure, L&T Infotech, Infosys, TCS top losers
- Maggi-maker Nestle India sees massive buying, surges over 6%
- India VIX, indicator of volatility, drops about 3 per cent to 22.19
- 104 stocks hit 52-week highs: ACC, CEAT, Ipca Labs, Thyrocare, Tata Comm and Pfizer among top names
Stocks Recommendations
Trent, MRF, Shriram Transport Finance, Thyrocare Technologies, Deepak Nitrate and Just Dial were the top gainers from mid and smallcap indices, up in the range of 3-10 per cent.Indian market is expected to follow with an increase in volatility in the coming days as we are heading closer to the US election and more economic restrictions due to the devastating rise of Covid cases.-Vinod Nair, Geojit Financial Services
On the other hand, Mahindra & Mahindra Financial Services, SAIL, Coromandel International, Century Ply, Amber Enterprises and PVR were among the top losers from the broader market space, down 2-5 per cent.
Nifty Private Bank was the biggest sectoral gainer, up 3.13 per cent. It was followed by 2.88 per cent gains in Nifty Bank and 2.15 per cent rise in Nifty Financial Service. Nifty IT and Nifty PSU Bank were among the top losers.
Market breadth was in favour of losers as 1,280 stocks ended in the green, while 1,374 names settled with cuts. As many as 104 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 59 names hit 52-week lows, mostly from the microcap space. About 210 stocks hit upper circuit limits and 225 lower circuit limits.
European markets were subdued in afternoon trade. UK's market was flat while those in Germany and France were down 1.06 per cent and 0.42 per cent, respectively. Asian markets largely closed with cuts. Kospi and Hang Seng were the biggest losers, down about half a per cent each. Thailand and China manages to eke out gains.
Let's prepare for tomorrow:
- Q2 earnings: Axis Bank, L&T, Hero MotoCorp, Titan, UTI AMC, ICICI Securities, Marico, MCX, Piramal Enterprises, Route Mobile, Thyrocare and Tata Coffee are scheduled to declare result on Wednesday.
- US stimulus: Investors will keep an eye on development in talks over stimulus package in the US.