Market Movers: What’s behind YES Bank’s 17% rally; 56 scrips give buy signals

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Market Movers: What's behind YES Bank's 17% rally; 56 scrips give buy signals


MUMBAI: Benchmark equity indices ended the first session of a truncated week with a hefty gain, led by positive cues from global markets and gains in several index heavyweights.

The gains on the Street were also likely helped by buying from domestic institutional investors to improve their year-end net asset values, said dealers. Investors shrugged off the spike in US 10-year Treasury bond yield, the US dollar index and slump in the dollar-rupee pair.

For the day, the Nifty50 index ended 2.3 per cent, or 337.80 points, higher at 14,845.10, while the BSE-Sensex closed at 50,136.6, up 2.3 per cent or 1128.1 points.

In the broader market, the gains were less fierce as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 1.7 per cent and 1.3 per cent higher, respectively, underperforming the headline index.

Here are the major movers in today’s session:


rallies

Shares of YES Bank rose 17 per cent ahead of the stock’s inclusion in the Nifty Next 50 index on Wednesday. The inclusion in the index is likely to drive inflows from passive funds that track the index while also improving possibility of a future inclusion into the benchmark Nifty50 index. The Nifty Next50 index is widely considered the nursing ground for future Nifty50 stocks.

IT stocks surge

Shares of information technology companies jumped sharply as investors built positions in anticipation of another quarter of strong earnings growth as was reflected in the performance of global peer Accenture recently. IT companies across market-caps are expected to report stellar deal wins and revenue growth for the March quarter. The Nifty IT index ended 2.9 per cent higher.

Defensives rise
In a reflection of the convoluted nature of the current market, today’s gains were largely driven by sectors considered to be safe bets in times of higher volatility. The Nifty FMCG and Nifty Pharma index surged 2.3 per cent and 2.7 per cent, respectively, mimicking gains in IT stocks. Analysts said the three sectors were also showing strength in terms of earnings growth.

WABCO India rises
Shares of WABCO India ended 1 per cent up, tracking the higher price bids received during the auction of over 500,000 shares on the stock exchanges today. These stocks went into auction as traders who short-sold the stock on Friday on hopes of receiving allocation in the offer for sale could not deliver the shares before close of trade.

Metal stocks soar
The rally in shares of metal companies continued unabated as investors remain optimistic of strong earnings growth, higher deleveraging and higher demand going ahead. The Nifty Metal index rose 2.8 per cent as brokerages continue to see room for more gains in the sector.

What gave buy signal?
As many as 56 stocks listed on the National Stock Exchange gave buy signal based on MACD indicators including SAIL, Tata Motors, Tata Steel, HDFC and HCL Technologies.

What’s ahead for the market?
Traders aggressively bought the out-of-money call options of the Nifty50 index, reflecting bullishness in the market. The buying was, however, limited till 15,250 strike price call option of the index suggesting that the level may act as a resistance in the near-term.

“I would be more comfortable if we can get past 14,950 on a closing basis. That would trigger a rally up to levels closer to 15,300. Until we do not get past 14,950, there is always a chance we take a U-turn from these levels and head southwards to 14,400. Extreme caution is advised at current levels,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.



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