Softening crude oil prices and recovery in the rupee cheered Dalal Street on Tuesday. The BSE Sensex closed 331 points, or 0.95 per cent, higher at 35,144, while NSEs Nifty settled 100 points, or 0.96 per cent, up at 10,582.
“The Indian market staged a smart recovery, ending Tuesdays session on a strong note, aided by some late recovery in key Asian indices and positive European cues. A decline in crude oil prices and a sharp appreciation in the rupee against the dollar also boosted market sentiments,” said Jayant Manglik, President of Religare Broking.
Heres a lowdown on the key developments of Tuesdays session:
Earnings impact
· Britannia: Shares of the FMCG firm gained over 1 per cent after its posted a 16.09 per cent rise in consolidated net profit to Rs 303.03 crore for the second quarter ended September 2018, led by a double-digit volume growth. It had posted a net profit of Rs 261.03 crore in the corresponding quarter last year.
· Eicher Motors: Shares of Royal Enfield maker rallied over 5 per cent after the company on Monday reported 6 per cent increase in consolidated profit after tax at Rs 548.76 crore in the second quarter ended September 30. It had posted a consolidated profit after tax of Rs 518.02 crore in the same quarter last fiscal.
· Coal India: Shares of Coal India ended higher after the countrys largest miner posted an over eight-fold rise in consolidated net profit to Rs 3,085 crore for the quarter to September 2018. It had reported a net profit of Rs 370.4 crore in the July-September quarter of 2017-18. Shares of the company closed 0.51 per cent up at Rs 265.40.
Who moved my Sensex
Reliance Industries, ICICI Bank, HDFC, Larsen & Toubro, ITC and Axis Bank contributed the most to the index gains. Other contributors included TCS, HUL, HDFC Bank and NTPC.
Spurt in open interest
Allahabad Bank witnessed the biggest jump in open interest contracts at 73.59 per cent, followed by Bank of India (43.95 per cent), Sun Pharma (26.41 per cent) and Apollo Tyres (24.65 per cent).
Most active stocks
Reliance Communications, Bank of India, Allahabad, Infibeam, PC Jeweller, NCC and GMR Infra were the most active stocks in terms of volume. Reliance Industries, State Bank of India, HDFC Bank, Jet Airways and Eicher Motors were among the most active scrips in terms of value.
Call/Put writing
On the option front, maximum Put open interest (OI) stood at 10,000 followed by strike price 10,200 while maximum Call OI was seen at 11,000 followed by strike price 10,800. Put writing was seen at 10,200 and 10,400 while Call unwinding was seen at all immediate strike prices. The option band signified an immediate trading range between 10,450 and 10,700 levels, said Chandan Taparia, Derivatives & Technical Analyst, Motilal Oswal Financial Services.
Expert speak
· Golden opportunity to start buying
There are two kinds of investors. One is the retail investor. He is anyway not much invested in equity. For him, this is a golden opportunity to start buying because whenever the retail investor has money, he should buy. He should not get into timing the market and these are the better times to build a portfolio, Arun Thukral, MD & CEO, Axis Securities, tells ET Now.
· NBFCs with solid business models would get stronger
On the NBFC side, under stress, the stronger business models would be able to strengthen themselves. Stronger business models are those where assets duration and liabilities were more or less matched and did not mean significant increase in borrowing costs. All these factors will really distinguish a quality business model from one that really came under stress on liquidity front, says Shilpa Kumar, MD & CEO, ICICI Securities, tells ET Now.
@fresh 52-week high/ low
As many as 31 stocks on National Stock Exchange (NSE) scaled their fresh 52-week low on Tuesday. Some of the stocks in the list included ABG Shipyard, Ashapura Intimates, Alchemist, Hinduja Ventures and Hotel Leela. On the other hand, Electrosteel Steels, Gallantt Metal, Linde India, Sakuma Exports and SMS Lifesciencs hit fresh 52-week high.
Sectoral update
Barring consumer durables, healthcare and realty, other sectoral indices on BSE closed in green with S&P BSE Oil & Gas index rallyed1.85 per cent. It was followed by Capital Goods index (up 1.25 per cent) and Bankex (1.01 per cent).
Bullish crossover on 6 counters
Technical indicator momentum indicator moving average convergence divergence, or MACD, signalled bullish crossovers on six counters on NSE. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement, and vice versa. The list included stocks such as Praj Industries, Meghmani Organics, Bhansali Engineering, Carborundum Universal, Hester Biosciences and Welspun Investment.
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