Informist, Monday, Oct 11, 2021

By Joe Milton and Abhishek Saini

MUMBAI – Catch-up momentum from financial and automobile stocks lifted benchmark indices to record highs today, with Nifty 50 topping 18000 points for the first time. However, profit booking in the second half made indices end sharply off the day's highs. 

Renewed buying interest was seen in frontline lenders such as State Bank of India, Kotak Mahindra Bank, HDFC Bank, and ICICI Bank that helped the Nifty Bank index close above its resistance level of 38200 points. 

Earlier, the Nifty Bank index saw strong selling pressure as it surpassed 38000 points, but with today the index has picked up momentum and managed to close at 38293.80 points, up 1.4%, after touching its record high of 38495.30 points. Analysts expect the index to inch higher and eye for 38500-38800 points as immediate target. 

Apart from this, expectation of strong demand revival in vehicle sales during the festival season prompted investors to bet on automobile companies. On the back of this, Nifty Auto emerged as the top gainer among sectoral indices, up 2.7%. 

Besides robust sales expectations for Tata Motors, bullish outlook from brokerage Morgan Stanley and the company's arm Jaguar Land Rover's lower-than-estimated negative cash flow for the September quarter aided the stock. Tata Motors stock was the top gainer among Nifty 50 constituents as it ended 8.6% higher at 415.75 rupees. 

The gains in banks and automobile companies helped offset the weakness in the information technology stocks, which succumbed to profit booking as Jul-Sep consolidated revenue of Tata Consultancy Services was below estimates. 

The subpar quarterly result from the industry-leader triggered profit booking among most technology companies. All the stocks part of the Nifty IT index fell, and the index ended 3.4% lower. Shares of Tata Consultancy Services, Tech Mahindra, Infosys, HCL Technologies, and Wipro ended 1-7% lower. 

As most good news on earnings are already priced in, stocks are left more vulnerable to any disappointment in their Jul-Sep earnings, said Nirav Karkera, head of research, Fisdom. 

Uptrend in crude oil prices and weakness of Indian rupees against the US dollar also capped the gains in the market today. 

Following this and profit booking at higher levels, the 50-stock index came off day's high of 18041.95 points and closed at 17945.95 points, up 0.3%. Correspondingly, BSE-Sensex ended at 60135.78, up 0.1%, after touching its record high of 60476.13 points. Both the indices closed at record levels. 

Despite, heavyweight stocks facing selling pressure towards the end, broader market showed resilience as small-cap and mid-cap indices on the NSE outperformed the benchmark indices with 0.5-1.5% gains. 

Investors are advised to remain cautious with stock-specific decisions in the near term while the positive outlook for broader markets in the medium term remains intact, said Karkera. 

On sectoral front, airline companies gained as domestic passenger traffic on Saturday reportedly topped 300,000, for the first time since Febraury. With air travel strongly coming back, it further boosts the outlook for the sector which has been banking on the easing of the pandemic to operate at full capacity. Shares of Interglobe Aviation and SpiceJet ended 4.4% and 2.0% higher, respectively. 

Real estate stocks, too, saw traction with Sunteck Realty reporting robust growth in its bookings and collections for the September quarter. This led to another round of buying in real estate companies and the Nifty Realty index ended 1.7% higher today.

Shares of power generating companies were also in the focus as demand for electricity is on an uptrend as economic activity picks up ahead of the festival season. Shares of NTPC Ltd, Tata Power, Torrent Power, and CESC Ltd, ended 1-9% higher. 

Shares of Aditya Birla Sun Life Asset Management Co witnessed a muted debut on the exchanges. The stock got listed at a premium of merely 3 rupees to its issue price of 712 rupees. The stock closed 1.8% lower at 699.45 rupees. 

* Among Nifty 50 stocks, 34 rose and 16 fell

* Among Sensex stocks, 21 rose and 9 fell

* On the NSE, 1,121 stocks rose, 901 fell and 60 were unchanged

* On the BSE, 1,952 stocks rose, 1,481 fell and 159 were unchanged

* Nifty IT: Down 3.36%; Nifty Bank: Up 1.37%; Nifty Auto: Up 2.67%

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BSE                                              National Stock Exchange
Sensex: 60135.78, up 76.72 pts (0.13%)           Nifty 50: 17945.95, up 50.75 pts (0.3%) 
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S&P BSE Sensitive Index                          Nifty 50
Lifetime High: 60476.13 (Oct 11)                : Lifetime High: 18041.95 (Oct 11)
Record Close High: 60135.78 (Oct 11)            : Record Close High: 17945.95 (Oct 11)
2021 1st day close: 47868.98 (Jan 1)            : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60135.78 (Oct 11)            : 2021 Closing High: 17945.95 (Oct 11) 
2021 Closing Low: 46285.77 (Jan 29)             : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60476.13 (Oct 11)         : 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 Arshad Hussain

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