Nifty snaps 5-day losing streak, midcaps outperform, but banks fall
Street gains momentum after witnessing correction through the week, with the midcap index ending almost a percent higher. But, the Bank Nifty witnessed weak movements as well.
Even as the market has largely been in consolidation mode, the Street gained some momentum on Thursday, with the Nifty snapping its five-day losing streak.
The Sensex was up 85.82 points at 29422.39, while the Nifty was up 32.90 points at 9136.40. The market breadth was positive as 1,823 shares advanced against a decline of 1,048 shares.
Broader markets continued to outperform benchmarks as Midcap index gained almost a percent, but the Bank Nifty witnessed weak movements as it fell 0.30 percent at 21,491.40.
"The action is shifting from large caps to small caps. Large indexes are consolidating in line with global market while mid and small caps continue to rally. A decisive move will depend upon the outcome of Q4 results and stability in global market," said Vinod Nair, Head of Research, Geojit Financial Services, in a statement.
Jayant Manglik of Religare Securities suggests continuing buy on dips approach and keeping the leveraged positions hedged.
"Don't forget that we also have derivatives expiry scheduled next week which will further add to the prevailing volatility. So, risk management should be the prime focus. At the same time, keep a close eye on earnings and global developments for further cues," he said in a statement.
HDFC was the leading contributor to Sensex' gains, up nearly 2 percent followed by Infosys, TCS, Asian Paints, Maruti and Lupin. Adani Ports retained its uptrend, rising 1.8 percent.
ICICI Bank and Axis Bank shares prices fell 2-3 percent after bad asset quality performance reported by Yes Bank.
Yes Bank fell nearly 4 percent as investors reacted to the bank's Q4 results. Though the private sector lender posted better-than-expected net profits for the March quarter, the asset quality deteriorated significantly.
HDFC Bank gained 1 percent ahead of its earnings on Friday. The country's second largest private sector lender is expected to report profit growth below 20 percent for the second consecutive quarter in Q4FY17.
IndusInd Bank gained 0.3 percent as majority of brokerage houses retained their bullish stance on IndusInd Bank, citing strong performance excluding one-off provisions in the quarter ended March 2017.
Shalimar Paints ended the day with over 5 percent gains after investor Porinju Veliyath of Equity Intelligence bought some shares.
Among other midcap stocks, Jay Bharat Maruti was locked at 20 percent circuit to close at 52-week high of Rs 523 on the back of robust numbers posted for the quarter ended March 2017. The company's Q4 (January-March) net profit rose 71.9 percent to Rs 20.8 crore against Rs 12.1 crore, in the same period last fiscal.
Indian Hotels took a hit of over 1 percent after the Supreme Court allowed the New Delhi Municipal Council (NDMC) to auction the iconic Taj Mansingh Hotel. Tata Sons owned Indian Hotels can run the hotel for six months post the auction.
Investors bet positively on Sun TV Network's stock after analysts were upbeat on the stock on digitisation prospects going forward. The scrip soared over 6 percent. Analysts tracking the stock highlighted the positive developments around Arasu Cable, which will set the ball rolling for digitisation in the state.