Upmove seen in Nifty might have more legs

Tuesday was a good day for the market. Within minutes of opening the Nifty drifted into the red and hung around 5,700 levels for most of the morning session, but it started picking up towards the second half and finally closed around 5,750.

Over the last few days, the Nifty has put on about 2 percent from its recent low, indicating that this up move might just have a bit more by way of legs, said CNBC-TV18's managing editor Udayan Mukherjee.

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Below is the verbatim transcript of Udayan Mukherjee's comments

Today the star sectors were PSU banking stocks; all across the board they did very well. Oil and gas names like Reliance, Oil and Natural Gas Corporation (ONGC) and Cairn India were quite supportive.

Sun Pharma was the big star in the index. IDFC did quite well and Maruti Suzuki which reported best numbers from the auto-pack this month, moved up quite a bit. However, Bajaj Auto disappointed with its monthly numbers and the stock lost a bit of ground.

Outside the index, the big excitement was on Reliance Communications, which jumped 12 percent after signing a Rs 1,200 crore deal with Reliance Jio leading the market to believe that this was the beginning of a longer term partnership between the two companies, which might have deeper ramifications.

Among other stocks that did well were Sterlite Industries, Sesa Goa, Renuka Sugars and Bajaj Hindusthan. Other names like Educomp Solutions, Delta Corp, Siticable, Yes Bank, Indraprastha Gas (IGL), IVRCL, Ramky Infrastruture and Adani Power also did well.

The Reliance Communication effect clearly rubbed off to the other Anil Dhirubhai Ambani Group (ADAG) Group names. So, Reliance Capital, Reliance Power and Reliance Infrastructure were all up today.

There weren’t too many losers; Mahindra Satyam had a bit of an off day today and Idea Cellular was down. Otherwise the market breadth was very good, reasonable volumes. There was some leadership from banking and oil and gas space which might have been lacking yesterday. One will have to wait and watch if this up move can be extended for another 50-100 points on the index.