After Market: Jet, Yes Bank, Adag stocks fly; 111 stocks look oversold
NEW DELHI: A fresh wave of short covering at the expiry of weekly contracts helped Indian equity market close with strong gains on Thursday.
The sentiment turned positive after the US Fed signalled rate cuts in the near future, which was seen as a positive sign for emerging markets such as India.
“The Fed is a factor that infused positivity. Besides short covering launched the market into the higher orbit," said Rusmik Oza, Head of Fundamental Research at Kotak Securities.
However, the undercurrent of the market remains fragile amid concerns over the NBFC sector and high valuations. "The market is at its peak as far as valuation is concerned. It is a sell on rise market as the pain and pressure remain in the NBFC sector," Oza said.
Sensex leaped 489 points, or 1.25 per cent, to close at 39,601, with only four stocks – HUL (down 0.26 per cent), HDFC Bank (0.16 per cent), ITC (0.07 per cent) and NTPC (0.04 per cent) – ending in the red.
Here is a lowdown on the key highlights of Thursday's session:
Jet shares fly
After falling for 13 consecutive days, shares of Jet Airways rallied some 93.35 per cent to close at Rs 64. "Short covering in weekly derivatives pushed the stock higher. It might see higher levels from here on,” said Sameer Kalra, Founder, Target Investing.
Yes Bank surges 11%
Short covering also helped Yes Bank on expiry of weekly derivative contracts, as the stock closed with a strong gain of 11 per cent at Rs 114.55, breaking the losing run of last two sessions.
ADAG stocks see gains
Recently beaten down Reliance Adag stocks witnessed solid gains, riding a wave of short covering. Shares of Reliance Infrastructure (up 34.74 per cent), Reliance Capital (up 27.75 per cent), Reliance Power (up 26.32 per cent), Reliance Naval and Engineering (up 9.87 per cent), Reliance Home Finance (up 5.56 per cent) and Reliance Communications (up 4.72 per cent) all settled higher.
Suzlon breaks 6-day losing run
Shares of Suzlon Energy surged 22.39 per cent to settle at Rs 4.10, breaking their losing streak of last six consecutive sessions after media reports said the company's lenders will meet on Friday to decide on a debt restructuring proposal.
Adani Green Energy gains
Shares of Adani Green Energy rose 3.15 per cent to Rs 40.90 after its arm Adani Renewable Energy Park (Gujarat) bagged a 130-megawatt (MW) wind power project in an auction by state-owned Solar Energy Corporation of India (SECI).
Spurt in OI
With a change of 33.52 per cent in open interest (OI), UPL led the pack of stocks that witnessed the biggest spurt in open interest on NSE, It was followed by Reliance Capital (3Read More – Source