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It remains to be seen if the market can sustain the gains as a flurry of poor macro data puts pressure on investor sentiment. The Nikkei/IHS Markit Services PMI plunged to an eye-popping 5.4 in April from March’s 49.3, showing an unprecedented contraction since the survey first began over 14 years ago. The composite PMI came in at an all-time low of 7.2 in April from March’s 50.6.
Banks and financials were at the forefront of the rally with HDFC twins contributing the most towards Sensex’s 230-point jump. M&M, Bharti Airtel and ICICI Bank also registered gains.
Below were the key trends on Dalal Street on Wednesday:
Street’s ‘no’ to stake sale in Axis, ITC
Investors on Dalal Street did not like the news of government stake sale in Axis Bank and ITC well. Axis shares fell 0.22 per cent to Rs 388.25 and ITC’s 5.81 per cent to Rs 163.80. Reports said the government, which desperately needs cash, was looking to raise Rs 22,000 crore by selling its stake in these companies.
OMC shares take a hit
Shares of oil marketing firms were battered after the government asked them to absorb a sharp increase in excise duty on petroleum products. HPCL tanked 5.68 per cent to Rs 202.45, IndianOil 2.73 per cent to Rs 76.60 and BPCL 0.94 per cent to Rs 343.55. Oil and gas explorers ONGC and GAIL gained up to 4 per cent, as crude oil prices jumped in the international market.
Insider trading: Apollo Pipes, Generic Pharma
Sameer Gupta, promoter of Apollo Pipes, acquired 1.25 lakh shares of the company taking his stake to 21.77 per cent. Shares of the smallcap firm added 2.82 per cent to Rs 306. Seven holders of preferential warrants of Generic Pharmasec, which includes two promoters, decided to convert them into 6 crore equity shares. Share price of the company hit the upper circuit limits but pared gains to close at Rs 12, up 1.69 per cent.
Q4 impact: NIIT Tech, Adani Ports
Shares of NIIT Tech soared 19.53 per cent to Rs 1,420.50 after the company reported a 11.4 per cent rise in consolidated net profit at Rs 113.6 crore on the back of strong tech capabilities and large deal wins. Similarly, Adani Ports added 3.12 per cent to Rs 271.35 after the company said it would focus on preserving cash.
Autos ride as showrooms open
Auto stocks jumped after a number of companies said they resumed operations at their dealerships. Maruti Suzuki said it has re-opened 600 dealerships, which were closed due to coronavirus-led lockdown, and even started delivery of vehicles. Following the news, shares of the company added 0.25 per cent while M&M, TVS Motor, Tata Motors and Hero Moto gained 3-6 per cent.
Stocks that slumped to 52-week lows?
As many as 89 stocks on BSE crashed to their 52-week lows. They included Aditya Birla Fashion, Arvind Fashions, Bank of Baroda, Chalet Hotels, DB Corp, Lemon Tree, Quess Corps, PNB, PVR, SBI, IndianOil and DCB Bank, among others.
Stocks that hit upper circuit limits?
Over 220 stocks hit the upper circuit during Wednesday’s trade, They included Mahindra CIE Automation, Gayatri Projects, Raymond, Reliance Capital, Balrampur Chini Mills, Sadbhav Engineering and Infibeam Avenue, among others.
25 stocks turn ‘oversold’
Thanks to relentless selling in recent sessions, as many as 25 names turned ‘oversold’ as they crossed below the 30-mark on RSI indicator. They included Bank of Baroda, Reliance Naval , Magma Fincorp, SBC Exports, Mahindra Holidays and Sunteck Realty, among others.
Where is Nifty headed?
Both benchmark Nifty and Bank Nifty gained strength ahead of the weekly expiry in the options category. While Nifty closed at 9,270, the Bank Nifty closed at the highest point of the day. “We can see a technical rebound in Nifty. Nifty can stay between 9,450 and 9,050 on the day of weekly expiry. Sell Nifty if it bounces to 9,450. However, below the level of 9,080, Nifty may fall further,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
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