Sensex gains 196 points; Nifty holds above 11,000; SBI, Sun Pharma top gainers
Vinod Nair, Head of Research, Geojit Financial Services
Market regained 11000 mark, given the strong earnings and benign yield despite rise in inflation. Notably, mid & small cap participated in today’s up move, which were underperforming in recent times due to rich valuation. Additionally, drop in oil price and strengthening rupee may contain inflationary pressure. PSU banks outperformed due to prospects of govt’s recapitalization plan.
Shares of oil marketing companies (OMCs) such as IOC, HPCL and BPCL rallied up to 6 per cent on Tuesday as oil prices extended losses on Tuesday after sliding more than 4 per cent on Monday to hit a three-month low. Shares of Hindustan Petroleum Corp and Indian Oil Corp gained 6.56 per cent to Rs 281.70 and 4.76 per cent to Rs 165, respectively on the NSE. Bharat Petroleum Corporation added 3.47 per cent to Rs 395.50. HPCL, IOC and BPCL were the top gainers on the Nifty index.
Impact of ace investor Rakesh Jhunjhunwala on a stock he chooses to focus on is virtually instantly visible. The same effect was seen today. Lupin share price rallied over 1 per cent after Jhunjhunwala bought additional 1 lakh shares of the pharma major in the June quarter. Reacting to the news, the stock added as much as 1.35 per cent to Rs 829.50 on the BSE. Rakesh Jhunjhunwala owned 86,98,605 shares or 1.92 per cent stake in Lupin at the end of the March quarter of financial year 2017-18. According to latest shareholding pattern available on the BSE, Jhunjhunwala increased his holding in Lupin by 1 lakh shares in the June quarter.
Target: Rs 76
Stoploss: Rs 73
- Brent, WTI crude slipped 4.5% overnight
- Brent dipped below $72, WTI below $68
Small trade range on Nifty stands at 19,000-11,000 and the bigger trading range lies between 10850-11025. In the case of BankNifty, the small trade range lies between 26,600-26,800 and the bigger range is at 26,500-26,950.
The Sensex and Nifty ended lower on Monday, as a dip in oil prices hurt energy stocks such as Reliance Industries, while ICICI Bank fell on reports that the bank has hired a law firm to look into allegations of irregularities in some loan accounts. The Sensex ended at 36,323, down 217.86 points, while the broader Nifty50 settled at 10,936, down 82.05 points. In the broader market, the BSE Midcap and the BSE Smallcap indices slipped 2.5 per cent each, underperforming the benchmark indices.