The Nifty50 index ended 1.3 per cent, or 182.4 points, higher at 14,507.3, while the BSE-Sensex closed at 49,008.5, up 568.4 or 1.2 per cent.
In the broader market, gains were more pronounced as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 1.6 per cent 1.2 per cent higher, respectively.
Here are the major movers in today’s market:
Sterling and Wilson sinks on Tata-Mistry verdict
Shares of the company tanked 9 per cent after the Supreme Court gave a verdict in favour of Tata Sons in the plea by Shapoorji Pallonji’s Cyrus Mistry. Investors fear that Mistry loss and the uncertainty around the value of Shapoorji’s stake in Tata Sons could undermine Shapoorji Pallonji Group’s ability to repay the loan taken from Sterling and Wilson Solar.
Tata Steel’s surge continues
Shares of the steelmaker rose another 6 per cent today on top of the near 3 per cent rise on Thursday as investors remain bullish on the prospects of the company. Analysts believe that
will use the supernormal profits in recent quarters to pay down its debt. Expectation that global steel prices will continue their uptrend also buttressed investor optimism for the company.
Kalyan Jeweller’s weak debut
Shares of the jewellery company listed at a discount of 15 per cent to its IPO price on the stock exchanges in one of the very few unsuccessful listings in the past 12 months. With rising COVID-19 cases undermining outlook on consumer demand for the near-term, investors were unwilling to pay a premium for the stock, said analysts.
Some PSU banks rise on Bhushan Power resolution
Shares of Canara Bank, Punjab National Bank, Bank of Baroda and State Bank of India ended higher as they will benefit the most from the completion of the resolution process of Bhushan Power & Steel after JSW Steel was reported to close the acquisition process soon. JSW Steel had bid Rs 19,350 crore for buying Bhushan Power.
What gave buy signal?
As many as 27 stocks listed on the National Stock Exchange gave buy signals based on MACD indicator. The list included Bharti Airtel, Tata Consumer Products, Nestle India and Kansai Nerolac Paints.
What’s ahead for the market?
Traders today bought out-of-money call options of Nifty50 index up till 14,700 strike price suggesting that any upside in the index next week will be limited to that level. On the put options side, trades sold most strike prices indicating that they do not see much downside in the index from current levels.
“What needs to be seen in the coming week is that we do not retest the lows of this week as that could cripple the index. Should that happen, we will slip further to test 14,000,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.