Overnight, US Treasury bond yields showed signs of easing. The move in the US bond market should provide some comfort to investors in emerging markets who have been worried that continuous rise in yields could punish equities in the basket.
Investors were also relieved that the hearing in the Supreme Court on loan moratorium did not yield any negative news for the banking sector in terms of extension of reporting bad loans as well as waiver of interest on loans.
For the day, Nifty50 index ended 0.5 per cent, or 78.35 points, higher at 14,814.75, while Sensex closed at 50,051.44, up 0.6 per cent or 280.15 points.
In the broader market, the gains were similar to those seen in largecap stocks. The Nifty Midcap 100 and Nifty Smallcap 100 index closed 0.9 per cent and 0.4 per cent higher, respectively.
Here are the major movers in today’s session:
Banks breathe sigh of relief
Nifty Bank index wobbled for a few hours after the Supreme Court’s verdict on the loan moratorium case but found its feet towards the end of the session to end 1.7 per cent higher. The SC dismissed plea for extension of moratorium and waiver of interest on loans. Analysts said that the ruling has removed a major uncertainty, but all eyes will now shift to the March quarter earnings of banks to see the true picture of NPAs.
Alcohol stocks surge on Delhi’s move
Shares of alcoholic beverage makers rose sharply after the Delhi government lowered the minimum drinking age in the union territory to 21 years from 25 years, which is likely to boost sales in one of the largest cities in the country. Shares of United Spirits, Radico Khaitan, Globus Spirits, and United Breweries rose 2-7 per cent.
Hindalco weak on likely price decline
Shares of Hindalco ended 2.4 per cent lower today as sentiment was hit by the sharp fall in global aluminium prices in the wake of concerns over rising supply. Media reports that Chinese authorities may allow supply of aluminium led to commodities traders’ anticipating an increase in supply of the commodity in the coming months.
Cement stocks rise post MMDR bill
Shares of cement companies rose after the Lok Sabha approved the Mines and Minerals (Development and Regulation) Bill as analysts believe that the bill could spur more merger and acquisitions in the sector. Brokerage firm Citigroup Global Markets said that bill could reduce transaction costs for M&As in the sector especially with respect to transfer of limestone leases.
What gave buy signal?
As many as 49 stocks listed on the National Stock Exchange gave a buy signal based on MACD indicators. The list included Tata Motors, IDBI Bank, Bharti Airtel, and Ambuja Cements.
What’s ahead for the market?
Traders continued to sell both the out-of-money call and put options of Nifty50 index suggesting that today’s bounce back did little to change their indecisiveness on market’s direction. In the futures segment, traders covered the short bets on the index’s March contract following the positive outcome on the loan moratorium case in the SC.
