MUMBAI: Benchmark equity indices ended higher today as investors looked past the surging COVID-19 cases in the hope that the second wave’s peak may be imminent in the next two weeks and that the vaccination drive will accelerate from May 1.
The signs of a likely peak in Mumbai and expectations of Delhi, too, hitting peak cases in the coming fortnight have given investors something to cheer for amid the gloomy national mood caused by a scary second wave of infections in the country.
For the day, the Nifty50 index ended 1 per cent, or 144 points, higher at 14,485, while the BSE-Sensex closed at 48,386.5, up 508 points or 1.1 per cent.
In the broader market, the gains were healthy as the Nifty Midcap 100 and Nifty Smallcap 100 index closed 0.8 per cent and 1.1 per cent higher, respectively.
Here are the major movers in today’s session:
Banks lead gainers
Shares of banks topped the list of gainers as March quarter earnings of ICICI Bank lifted investors’ mood. The lender’s better-than-expected performance not only lifted its stock by nearly 4 per cent but also helped Nifty Bank index rise 1.7 per cent. Lenders had come under pressure in recent weeks on concerns that the second wave would unleash a fresh set of bad loans.
HCL Tech slumps on hazy guidance
Shares of the information technology company closed nearly 3 per cent lower after a lower-than-expected March quarter performance. The company’s hazy guidance of double-digit growth in 2021-22 also irked investors given HCL Tech’s usual practice of giving specific guidance.
Oxygen stocks added gains
The ongoing medical oxygen crisis in the country spurred gains in shares of oxygen suppliers like Linde India. Analysts expect these companies to have a strong June quarter given the surge in demand and the ongoing efforts to add capacity.
CCD slumps after strong listing
After a strong relisting, shares of Coffee Day Enterprises ended 5 per cent lower on likely profit booking by investors. The stock re-listed at Rs 48.50 on the National Stock Exchange, a significant premium to the previous close.
Over 200 stocks hit 52-week highs
In a reflection of the breadth of the gains in the market, 216 stocks hit their fresh 52-week high during the session. Names included SAIL, ICICI Prudential Life Insurance, JSW Steel, Laurus Labs and Suven Pharma.
What gave buy signal?
As many as 115 stocks listed on the NSE gave buy signals based on MACD indicators. The list included HDFC Bank, Indiabulls Real Estate, Power Grid Corp of India, Bharat Petroleum, and Coal India.
What’s ahead for the market?
Traders bought the out-of-money call options of Nifty50 up till 14,800 strike price suggesting that they see limited upside for the index for the remainder of the April derivative series. In the futures segment, traders added long positions in the April contract of the index as Open Interest rose 1.4 per cent.
“We remain cautiously optimistic as volatility is likely to remain high on the back of derivative expiry and upcoming earnings announcements. Banking, metal and pharma are showing tremendous resilience and should be preferred for long trades on dips,” said Ajit Mishra, vice president of research at Religare Broking.
