Udayan Mukherjee, managing editor, CNBC-TV18, says that it was not a bad close to the session. The session in morning was very sluggish, the market did not respond to the measures announced by the government yesterday.
Udayan Mukherjee, managing editor, CNBC-TV18, says that it was not a bad close to the session. Early morning session was very sluggish, the market did not respond to the measures announced by the government yesterday. Later in morning the inflation data came out much better than expected and the market moved up on the back of rate sensitives.
Bank stocks started moving up on hopes that the low inflation data might give the Reserve Bank of India (RBI) reason to move as early as next week and not wait till January. So, the public sector banks did quite well.
Metals space was quite active today. The Chinese market went up quite a bit in the morning and we saw names like Hindalco, Sterlite, Sesa Goa, Jindal Steel and Power Limited (JSPL) and Tata Steel, all did quite well.
In information technology (IT) space, Tata Consultancy Services (TCS) and HCL Tech stabilized after a weak start to the week. However, we saw weakness in Bharti Airtel, in many of the infrastructure names like Bharat Heavy Electricals Limited (BHEL), Jaiprakash Associates (JP Associates) and Power Grid as well today and pharmaceuticals were also subdued. So, the index could not move beyond that half a percent. Even so it wasn't bad.
The midcaps were fine as well though the breadth was mixed today. The public sector banks did quite well across the board. Even smaller banks like Vijaya Bank, UCO Bank, Dena Bank and Allahabad Bank, all were up today.
In infrastructure space, names like Nagarjuna Construction, IVRCL, Hindustan Construction Company (HCC) did well.
Stocks like Pantaloon, Hexaware, Karnataka Bank and there was excitement in some fertiliser names after the clearance of urea investment policy. So, Fertilisers and Chemicals Travancore Limited (FACT) stood out as the big winner in the space.
Some losers, SKS Microfinance, Pipavav Shipyard, Titan, Aurobindo Pharma were among some of the names which came off today.
Not a bad end to the week. It was a sticky week for the market and despite today's half a percent rally we are still down half percent for the week. This indicates that it was a range bound with a bit of grind.