Market Movers: SBI, Bharti Airtel soar; 94 stocks give sell signal

Market Movers: SBI, Bharti Airtel soar; 94 stocks give sell signal

MUMBAI: Benchmark indices managed to stage a late comeback to end Wednesday’s session off their day’s low with the Nifty50 eking out gains and BSE Sensex ending largely flat.

The reversal in the benchmarks was aided by gains in shares of banks, automobile and consumer goods companies.

The Nifty50 index closed 1.4 points higher at 14,564.85 points while Sensex ended at 49,492.32, down 0.1 per cent.

In the broader market, the losses were pronounced with the Nifty Midcap 100 and Nifty Smallcap 100 index ending 0.6 per cent and 0.2 per cent lower, respectively.

Here are the major movers in today’s session:

Bharti Airtel zooms on FPI limit hike
Shares of India’s second-largest telecom operator jumped over 2 per cent on the perception that the stock could see large foreign inflows after it said that it will ask the National Securities Depository to notify the increase in its foreign investment limit to 100 per cent from 49 per cent currently.

SBI soars on Goldman Sachs bullishness
Shares of India’s largest state-owned company jumped nearly 5 per cent after brokerage firm Goldman Sachs reportedly added it to its “conviction list” and termed it one of the most attractive stocks in its coverage.

Automobile stocks rise on Budget hopes
Nifty Auto index clocked 0.9 per cent in gains today on optimism that the government may announce the long-awaited incentive-linked scrappage policy in the upcoming Union Budget. The gains in the Nifty Auto index was led by Mahindra & Mahindra.

Banks show strength
Shares of banks continued to show strength in the session despite a minor spell of profit booking as investors remain optimistic for the sector’s earnings and asset quality. The Nifty Bank index rose 0.7 per cent.

Volatility shoots up
The volatility gauge India VIX ended 1.9 per cent higher at 23.2925 points after rising as much as 4 per cent at one point in the session. The recent increase in the volatility gauge is likely in anticipation of rise in sharp swings in the market ahead of the Budget, said analysts.

What’s giving sell signal?
As many as 94 stocks gave a sell signal on the MACD indicator, including prominent names like TTK Prestige, Pidilite Industries, SAIL, and Bharat Dynamics.

What’s ahead for the market?
Traders sold both out-of-money call and put options of Nifty50 in today’s session, suggesting that they expect the index to remain range-bound in the coming days.

“Markets will react to the IT majors, Infosys and Wipro, results in early trade Thursday. With markets at a record high, we feel the prudent approach is to use dips to add quality names. And, we expect stock-specific volatility to remain high,” said Ajit Mishra, vice president of research at Religare Broking.

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