Market Movers: Tata Motors, HDFC Bank soar as Indigo Paints make stellar debut

Market Movers: Tata Motors, HDFC Bank soar as Indigo Paints make stellar debut

MUMBAI: Domestic benchmark equity indices extended their post Budget rally amid strong cues from global markets, likely buying from foreign portfolio investors and gains in sectors such as financial services and infrastructure.

Global markets surged as expectations of strong economic recovery in the calendar year remain firm after global vaccine rollout crossed the 100 million mark on Monday.

Investors have been enthused by the impetus of growth and stimulus to capital expenditure provided by the government in the Budget.

Nifty50 ended at a record closing high of 14,647.85, up 366.7 points or 2.6 per cent. Sensex closed at a record closing high of 49,797.72, up 2.5 per cent or 1,197.1 points.

Here are the major movers in today’s session:

Banks continue rally
Nifty Bank hit a fresh lifetime high during the session and closed at a record closing high of 34,267.90 points, up 3.6 per cent as investors are optimistic about the asset quality of the sector in the wake of the announcement of a bad bank-like structure in the Budget and loan growth in the economy on the back of government’s fiscal stimulus.

HDFC Bank surges on audit of IT infra
Shares of the country’s largest private sector lender rose nearly 6 per cent as investors perceive RBI’s special audit of the lender’s IT infrastructure as positive given that it will help enhance the structure for good, said analysts.

gains on hope of CV growth
Shares of Tata Motors soared 15 per cent as investors were impressed by the strong commercial vehicles sales growth seen by the industry in January. Further, with growth prospects improving, analysts believe that commercial vehicle makers could see a sharp increase in CV sales going ahead.

Indigo Paints makes stellar debut
Shares of the paint maker made a strong debut on the bourses today as they more than doubled their value by the close of trade. The stock listed at a premium of 75 per cent over the issue price of Rs 1,490.

Cements stocks rise on demand optimism
Shares of cement companies saw strong gains as they extended the surge seen on Monday. Investors were optimistic that the higher-than-expected capital expenditure by the government in the next fiscal year will boost domestic demand.

What gave buy signal?
As many as 83 stocks listed on the National Stock Exchange gave buy signal during the session, including State Bank of India, Axis Bank, Zee Entertainment Enterprises, HDFC Bank and Indian Bank.

What’s ahead for the market?
Traders aggressively bought the out-of-money Call options of Nifty50, suggesting that they see more room for gains. The 15,000 strike price Call option of Nifty50 had the highest addition of Open Interest indicating that the level could be tested in the coming days.

“Nifty failed to get past 14,750 level which is a crucial point. Crossing this level would cement the upside direction of the markets which should lead us to 15,000. However, it is advised to enter on dips or mild corrections. The index has good support at 14,100 and hence we should accumulate positions closer to that level,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.

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