An evening walk down Dalal Street | RIL, financials help market snap losing streak; Nifty above 10,300

October 08
18:06 2018

After days of bloodbath on D-Street, bulls can finally heave a sigh of relief as the Sensex ended almost 100 points higher. The Nifty, meanwhile, held 10,300-mark and closed above it. But this end was preceded by wild swings that D-Street saw through the day.

Monday’s trade was dominated by trends in financials’ space. Yes Bank led the gainers’ charts as investors bet on reports that its estranged promoters had initiated an out-of-court settlement. Other names such as Kotak Mahindra Bank propelled the market.

Meanwhile, index heavyweighs such as Reliance Industries, too, had a huge impact on D-Street as a 6 percent rally on the stock helped boost sentiment.

It was a volatile day of trade as the market kept swinging between high and low points. There was weakness in the metals space, along with pharmaceuticals, and FMCG names as well.

Metals took a hit on the back of weakness in domestic metal prices. Along with it, the news of Norsk Hydro getting a permit in Brazil to use new technology to extend and start Alunorte alumina refinery, the world’s largest, dented metal names. Investors may be worried about additional aluminium supply entering the market.

Among sectors, energy names, along with banks, and auto were the top gainers, while metals, pharma and FMCG names were the big laggards.

At the close of market hours, the Sensex was higher by 97.39 points or 0.28% at 34474.38, while the Nifty was up 31.50 points or 0.31% at 10348.00. The market breadth was negative as 757 shares advanced, against a decline of 1,889 shares declined, while 680 shares were unchanged.

Stocks in News

Yes Bank’s shares were one of the top gainers as investors bet on a media report that its promoters have initiated proceedings for an out-of-court settlement. The stock ended 7 percent higher.

Oil marketing companies such as Indian Oil, HPCL and BPCL soared in trade on Monday as crude prices fell from its recent highs. Reports of US considering some steps for big importers of oil from Iran also boosted sentiment. The stocks ended 0.2 to 8 percent higher.

Shares of transportation logistics company GATI plunged about 10 percent after CARE Ratings downgraded the company’s facilities and medium fixed-term deposits.

Meanwhile, Himachal Futuristic Communication (HFCL) gained more a percent after it received an advance purchase order worth Rs 879 crore.

Goa Carbon was locked in 20 percent lower circuit after it reported weak sales numbers for September.

Metal stocks were in focus as well today. Domestic metal prices have taken a hit, which adversely impacted metal stocks. Hindalco and Vedanta were one of the top index losers and lost 8-12 percent.

Global Markets

Equity markets in Europe were lower on the back of a weak handover from Asia. China’s central bank cut its reserve requirements for banks and that has led to a selloff in the markets there. Stoxx 600 was down around 0.5 percent.

Meanwhile, in Asia, On Monday, the Shanghai market posted its worst daily performance in months based on the central bank’s decision to cut reserve requirements. The Shanghai composite fell 3.72 percent to close at around 2,716.5.

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