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An evening walk down Dalal Street | Sensex, Nifty end at record closing highs, Bank Nifty above 28,000

August 08
18:06 2018

Bulls were back in the driver’s seat on Wednesday as sustained buying in banks ensured another record close for equity benchmarks. In fact, the Bank Nifty managed to clock 28,000 for the first time and ended above it. The Nifty, too, closed exactly at 11,450-mark, another milestone in its recent outperformance streak that the index has had.

The day began on a very flat note, almost setting the tone for a consolidation. But benchmarks picked up pace post noon, courtesy banks as well as energy names such as ONGC and Reliance Industries, thereby pushing indices higher.

Among broader markets, though, midcaps had a day of underperformance. The index closed on a flat note, with a negative bias.

Barring automobiles and pharmaceuticals, majority of sectoral indices ended in the green. Reliance Industries and ONGC were the top gainers, while Maruti Suzuki, Vedanta and Lupin lost the most.

The Sensex closed up 221.76 points or 0.59% at 37887.56, while the Nifty ended higher by 60.50 points or 0.53% at 11450.00. The market breadth was negative as 1,309 shares advanced, against a decline of 1,393 shares, while 146 shares were unchanged.

Stocks in news

Shares of Mahindra and Mahindra ended flat with a positive bias on the back of good results. Brokerage house UBS has a buy rating on the stock. The research house believes that strong EBITDA growth was helped by strong quarter for tractors.

TVS Motor fell 3 percent on the back of poor Q1 numbers. Jefferies said that weak gross margin offset by scale benefits.

Lupin ended 5 percent lower after it reported a 43 percent year-on-year decline in net profit to Rs 202.8 crore in the June quarter. PAT was much below analysts’ estimates on a subdued US business.

Patel Engineering Company soared 12 percent after the company received LoI from Tamil Nadu Generation and Distribution Corporation for construction of Kundah pumped storage hydro-electric project (500 MW) near Ooty, costing Rs 667.63 crore.

Edelweiss Financial Services share price fell as much as 6 percent even as the company reported decent set of earnings for the quarter ended June 2018.

Shares of Mphasis slipped more than 3 percent despite better June quarter results and approval of buyback of shares.

Global update

Markets in Europe were lower as investors eyed corporate earnings as well as trade tensions. Stoxx 600 was 0.15 percent lower with most sectors in the red.

Asian stocks closed mixed as investors took cues from US markets’ positive handover. Nikkei 225 closed lower by 0.08 percent, or 18.43 points, at 22,644.31.

“With headline index trading at record highs, some consolidation cannot be ruled out. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement,” Jayant Manglik, President, Religare Broking

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