Nifty Remains Strong, Touches New High; M&M, Reliance and Tata Motors Shine

Nifty Remains Strong, Touches New High; M&M, Reliance and Tata Motors Shine

Indian markets continued with the bullish trend with NSE Nifty scaling fresh all-time high. NSE Nifty was above 19,500 towards the end of the trading session and the mood is definitely bullish in Indian markets. European stocks opened negative on Thursday and US Futures were trading weak by a half percentage point.

Today’s rally was supported by Reliance Industries, Mahindra & Mahindra, Tata Motors, BPCL, NTPC, Axis Bank, Cipla and Dr. Reddy’s Labs. Among major gainers on NSE were Britannia, ONGC, PowerGrid and Apollo Hospitals.

Adani Green Energy board approved the plan to raise Rs 12,000 crore through QIP route. The stock was trading marginally higher. Apollo Hospitals was trading at 52-week high in today’s session. Mahindra & Mahindra is showing strength as investors are confident about long term prospectus of the company. M&M has reported strong numbers and high demand for many of its SUVs. Compared to other automobile manufacturers in India, M&M is better positioned as per automobile experts.

Among most active stocks in today’s session were Apollo Hospitals, Bajaj Auto, BPCL, Britannia, Dr Reddy's Laboratories, Hero MotoCorp, HDFC Life, Hindustan Unilever, Larsen & Toubro, Mahindra & Mahindra and Tata Motors. These stocks are also near their yearly or all-time highs.

Among major losers in today’s trade were Eicher Motors, HDFC Life, HCL Technologies, Maruti Suzuki, Bajaj Finance, IndusInd Bank, Grasim, ITC, Adani Ports and Infosys Technologies.

As per Dharmesh Shah from ICICI Securities, Bank of India and NCC were on his radar as good stocks. Shah has recommended BUY Call for NCC at current price for target of Rs 142 with Stop Loss at Rs 120. Shah has suggested BUY Call for Bank of India at current price for target of Rs 87 with Stop Loss at Rs 78.

Among stocks that touched yearly highs were Aurobindo Pharma, Amara Raja Batteries, Bajaj Auto, BHEL, Bombay Dyeing, Exide Industries, Genus Power, Hindustan Unilever, JK Tyre, Max India, Medanta and Ramco Cements. The rally has extended to mid-cap and small-cap stocks during the recent weeks. The overall strength in Indian markets will further boost investor sentiment.

Among real estate stocks, Oberoi Realty was trading firm today. Olectra Greentech was trading at all-time highs. The volume on this counter was strong, amid higher demand for shares.

In the IPO segment, Senco Gold IPO oversubscribed 6.5 times on third day. This IPO hasn’t received as good response as was received for IKIO Lighting and ideaForge Technology. Essen Speciality Films stock has gained further in today’s session after recent listing of the company on exchanges. PKH Ventures has withdrawn its IPO after lackluster response in the markets. The issue failed to generate enough interest in the primary market.

The trends in the US and European markets have turned negative. Indian market sentiment depends on the global factors as well. So, if there is a decline in the US market today, we can expect selling pressure in Indian markets on Friday. For today’s session, we have again witnessed strong buying in many blue-chip companies. Some companies that missed the recent rally in stocks, are catching us this week. We can expect stock specific action in the coming sessions.

Analyst Views: