Market Movers: Old economy stocks spoil party as Tata Motors mimicks Tesla

Market Movers: Old economy stocks spoil party as Tata Motors mimicks Tesla

MUMBAI: The party on Dalal Street over the BSE Sensex breaching the 50,000 level for the first time ever lasted only a few hours as profit-booking and concerns over the fate of vaccine rollout in the country spurred a violent selloff in the last hour of trade.

A fire at Serum Institute of India’s Pune plant, which is manufacturing and distributing Covishield vaccines in India, sparked fears that it will potentially delay the ongoing rollout of Covid-19 vaccines at a time when suppliers are already facing a hard time in keeping up with demand.

The Nifty 50 index ended closed 0.4 per cent or 54.4 points lower at 14,590.35 points, and the BSE Sensex closed at 49,624.76, down 167.4 points or 0.3 per cent. This after both the indices hit their lifetime highs earlier in the day.

Here are the major movers in today’s session:

Old economy stocks play spoilsport

The late selling in the market was led by shares of “oil economy” stocks such as NTPC, ONGC, GAIL, Coal India, Tata Steel and few others, which led the benchmark indices to close lower. The fate of these stock’s performance is perceived to be closely linked to the rollout of vaccines, which can help the real economy to return to normalisation faster.

RIL shines as SEBI nods for Future deal

The index major Reliance Industries stood firm in the face of selling and helped minimise the losses in the benchmark as it rose over 2 per cent after the Securities and Exchange Board of India gave its nod for the former’s acquisition of Future Group’s retail and wholesale assets.

Tata Motors mimicking Tesla

While rumours of a potential partnership between Tata Motors and Tesla remain just that, rumours, the Tata Group stock is at least mimicking its US peer by burning a hole in the pockets of investors who have shorted the stock relentlessly over the past few years with its unceasing rally, according to dealers. The stock rose 6 per cent today and is now up 126 per cent in the past month.

Bajaj Auto, Asian Paints, Bajaj Fin gain

Strong December quarter earnings by Bajaj Auto and Asian Paints was aptly rewarded by investors as their stocks ended 1.6 per cent and 0.7 per cent higher respectively. At the same time, Bajaj Finance’s strong commentary and fintech ambitions drove nearly 3 per cent gains for the scrip.

Who gave sell signal?

As many as 61 stocks on the NSE gave sell signals based on MACD indicators, including State Bank of India, Trident, Indian Oil, Ambuja Cements and Castrol India.

What’s ahead for markets?

Traders curiously bought both out-of-money call and put Nifty 50 options expiring on Thursday, reflecting indecisiveness over the direction the market could take on Friday.

“We witnessed nervousness around the 14750 levels and the Nifty erased all its gains to close in the red. However, the trend continues to remain positive and we still have a pending target of 14800-14900,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

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