Moneycontrol
Last Updated : Aug 06, 2018 06:08 PM IST | Source: Moneycontrol.com

An evening walk down Dalal Street | Benchmarks ‘bank’ on financials to end at record closing highs

The Sensex closed up 135.73 points or 0.36% at 37691.89, while the Nifty ended 26.30 points higher at 11387.10.

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Another day, another record close for benchmarks! Bulls seem to be in no mood to give up their momentum as the market shrugged off any chances of having Monday blues to end the day at record closing highs.

The week began on a strong note for the market with Nifty managing to scale 11,400 in the first few minutes of trade, while the Sensex too clocked 37,800-mark in the first hour.

The rally was largely supported by banks, auto, metals as well as energy names, while traditional defensives, IT and pharmaceuticals, took a hit. In the broader markets, midcaps too managed to end in the green, with the Nifty Midcap ending 0.45 percent higher.

However, bears tried to put up a tough fight in the last hour and were inflict some damage as well. Both Sensex and Nifty managed to end the day off the day’s high points.

The Sensex closed up 135.73 points or 0.36% at 37691.89, while the Nifty ended 26.30 points higher at 11387.10. The market breadth was narrow as 1,605 shares advanced, against a decline of 1,121 shares, while 176 shares were unchanged.

Axis Bank, State Bank of India, and ICICI Bank were the top gainers, while Tata Motors, Kotak Mahindra Bank, GAIL and Dr Reddy’s Labs lost the most.

“Markets ended with modest gains amid volatility, thanks to supportive local cues and firm global markets. The beginning was upbeat but profit taking in index majors capped upside as the session progressed. Meanwhile, noticeable buying interest in midcap and smallcap pack kept the participants busy,” Jayant Manglik, President, Religare Broking.

Stocks in news:

Share price of HDFC Asset Management Company, the country's second-largest mutual fund house, registered a healthy gain of 58 percent over issue price of Rs 1,100 per share on the NSE on listing. The stock closed 65% higher at Rs 1815 on NSE.

Shares of IDFC rose 5.8 percent even after the firm issued a clarification to exchanges with respect to reports of sale of its broking and mutual fund business. “We keep evaluating opportunities from time to time and should anything fructify, we will inform the exchanges as appropriate. At this point, there is nothing that requires disclosure and we cannot and do not comment on market speculation,” the company said in a filing to exchanges.

Tata Motors share price fell nearly 2% following weak Jaguar Land Rover sales data for July. The UK-based luxury car maker sold 6,077 units in month gone by, registering a 18.6 percent degrowth year-on-year.

Marksans Pharma share price rallied 15 percent after the company reported healthy profit growth for the quarter ended June 2018. Consolidated net profit during the quarter grew sharply by 72.6 percent to Rs 24.9 crore, backed by operational growth and stable revenue.

Share price of JMC Projects (India) surged 6 percent as company approved stock split and reported better Q1 numbers. The company has approved proposal for sub-division (split) of the existing face value of the equity shares of the company from Rs 10 each to Rs 2 each, subject to the approval of the members of the company.

Global Update:

Markets in Asia closed mixed cutting the gains that were achieved earlier as trade war issues were back on the table. Another set of tariffs on US goods were announced by China. The Nikkei 225 pared gains to close lower by 0.08 percent, or 17.86 points, at 22,507.32.

Meanwhile, markets in Europe were trading lower on the back of renewed trade tensions. Stoxx 600 was down around 0.1 percent during early morning deals.

Going forward, experts anticipate some consolidation ahead too. "We may see some consolidation in Nifty around the current level prior to further rise. However, there'll be no shortage of trading opportunities on stock specific front, thanks to prevailing earnings season. Besides, progress of monsoon and global cues will also be closely watched. Traders should stay with the trend and maintain "buy on dips" approach," Manglik added.
First Published on Aug 6, 2018 04:19 pm
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