An evening walk down Dalal Street | Indices see a green close, Yes Bank aids rally; Nifty below 10,850
Shares ended the day on a positive note, amid good moves from index heavyweights such as Yes Bank, among others. The Nifty managed to end just below 10,850-mark.
Yes Bank’s stock rallied nearly 19 percent intraday and ended 8 percent higher as the lender announced the appointment of Ravneet Gill as MD & CEO.
Other major sectors that witnessed gains were information technology, PSU banks and energy, while automobiles and pharmaceuticals seeing some pain.
The day began on a flat note for the indices as somber global cues kept a cap on any major upside. Rangebound trade continued on the market through the day till the last hour.
Equities resumed upward move in the last hour post Yes Bank announcement, helping them snap out of a negative trend that lasted two sessions.
At the close of market hours, the Sensex was up 86.63 points or 0.24% at 36195.10, and the Nifty up 18.30 points or 0.17% at 10849.80. The market breadth was negative as 938 shares advanced, against a decline of 1,533 shares, while 152 shares were unchanged.
Yes Bank and Reliance Industries were the top gainers, while Tata Motors, Power Grid, and Bharti Infratel lost the most.
“Stock markets in India continue to trade with uncertainty, echoing the cautious note being witnessed globally. Indices kicked off the day in the negative zone and did recoup some losses subsequently only to finally close the day near the flat line. Overseas, most European and Asian stock markets traded mixed amid uncertainties surrounding the global economic outlook as well as the ongoing US-China trade fight. Meanwhile, the US Senate is poised to vote later in the global day on duelling proposals to reopen the government. A partial shutdown entered its 33rd day on Wednesday. On the sectoral front, the auto and healthcare indices traded sharply lower while the realty, PSU banking and IT indices eked out gains,” Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund said in a statement.
Stocks in the News
Yes Bank’s stock ended 8 percent higher as it announced the appointment of Ravneet Gill as MD & CEO as well as Q3 results.
Experts are still bullish on ITC and one big reason as highlighted is valuations which are fairly attractive when compared to other large FMCG peers. Also, stable tax policy for cigarettes hereon should act as a tailwind. The stock ended nearly half a percent higher.
Persistent Systems shares gained 2 percent ahead of Board Meeting to consider share buyback proposal in the coming week.
Tejas Networks shares fell 14 percent as Axis Capital cut its price target for the stock after weak December quarter earnings.
Ujjivan Financial Services shares jumped 4 percent as global research firm Macquarie raised price target by 21 percent after strong set of quarterly earnings by the company.
Oberoi Realty shares climbed 6 percent as global investment firm CLSA increased its price target for the stock by 13 percent though results came in below estimates.
Tata Motors shares declined 3 percent after global brokerage firm CLSA remained bearish on the stock on weak JLR sales volumes.
European stock markets were slightly lower even as uncertainty continued among investors over US-China relations. Stoxx 600 hovered around the flatline.
Asian markets were higher even as investors were concerned around global growth and US-China trade relations.
The Shanghai composite rose around 0.4 percent to close at about 2,591.69 and the Shenzhen component advanced 0.661 percent to finish its trading day at approximately 7,573.52. The Shenzhen composite gained 0.457 percent to close at about 1,322.30.