Moneycontrol
Last Updated : Mar 08, 2018 05:09 PM IST | Source: Moneycontrol.com

Nifty snaps 6-day fall; Sensex hits triple century as banks rally on short covering

Midcaps also gained strength, with the Nifty Midcap index rising half a percent but still underperformed frontliners due to weak market breadth. About 1,507 shares declined against 1,189 advancing shares on the BSE.

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Bulls were back in power at Dalal Street on Thursday as the short covering-led rally in banks in last hour of trade helped benchmark indices gain one percent each.

The market rallied for the first time in last seven consecutive sessions. The easing of worries surrounding the trade war also boosted market sentiment, especially after media reports indicated that the some countries may be excluded from United States import tariff plan.

The 30-share BSE Sensex surged as much as 407 points intraday, before closing up 318.48 points at 33,351.57 while the 50-share NSE Nifty rallied 88.50 points to 10,242.70 amid volatility.

"We feel it's just a technical bounce and sustainability at higher level seems difficult. Traders shouldn't jump into the trade and keep a close eye on local developments, mainly related to the PSU banking fraud and upcoming macroeconomic data for cues," Jayant Manglik, President, Religare Broking said.

The Nifty has immediate resistance at 10,300-10,400, but maintain "sell on rise" approach, he advised.

Markets in Asia also closed higher on fresh developments related to planned metals tariffs. Japan's Nikkei, China's Shanghai Composite and Hong Kong's Hang Seng gained 0.5-1.5 percent. European stocks were mixed at the time of writing this article.

Back home, midcaps also gained strength, with the Nifty Midcap index rising half a percent but still underperformed frontliners due to weak market breadth. About 1,507 shares declined against 1,189 advancing shares on the BSE.

On the stock front, banking & financials stocks rallied smartly on short covering as the Nifty Bank index was up 343 points and PSU Bank index rose 2.8 percent while Financial Services index gained 1.5 percent.

ICICI Bank, HDFC Bank, SBI, Punjab National Bank, Bank of Baroda and HDFC rallied 1-4 percent while Reliance Industries (up 2.4 percent) and Infosys (up 1.1 percent) also supported the market.

Sun Pharma was biggest loser among Nifty50 stocks, falling 2 percent followed by TCS, ITC, Yes Bank, Tata Motors, IndusInd Bank and ONGC.

Bhushan Steel shot up 16 percent after Tata Steel identified as the highest evaluated compliant resolution applicant for acquisition of the debt-ridden company. However, Tata Steel fell 1.8 percent.

Amtek Auto and its group companies Castex Technologies & Metalyst Forgings were locked at 5 percent upper circuit after Liberty House, the global industrial and metals group, was chosen as preferred H1 bidder for debt-laden company's assets.

EIH, Trent, Manappuram Finance, Edelweiss Financial, Puravankara, DFM Foods, Ashok Leyland, Radico Khaitan, Federal Bank, Bank of Maharashtra, Balrampur Chini, Triveni Engineering and Dhampur Sugar gained 2-8 percent.

IDBI Bank lost 5.5 percent as it has highest exposure to the debt of Videocon Industries that was referred under National Company Law Tribunal.

PFC, REC and PTC were down 1-7 percent after country's largest lender State Bank of India raised concerns over loan accounts related to power sector.
First Published on Mar 8, 2018 04:22 pm
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