Market Movers: What fuelled gains in NBFCs; 46 stocks give buy signal

MUMBAI: Benchmark equity indices registered their lifetime highs helped by strong cues from global equities and likely buying from foreign portfolio investors, said dealers.

Risk appetite among investors remained strong as they bet on a structural recovery in the Indian economy that may help the country onward to a higher growth trajectory post the COVID-19 pandemic.

Jefferies’ Christopher Wood termed India the “best post-COVID-19 recovery story in Asia”, reflecting the optimism among investors for an economy that has entered a technical recession in the first two quarters of the current financial year due to the pandemic and subsequent nation-wide lockdown.

The RBI’s messaging to not allow the 10-year benchmark bond yield to go beyond the 6 per cent mark also underpinned the optimism on the Street, as a lower-bound risk-free rate makes equities appear relatively cheaper till perpetuity.

The Nifty50 index ended 151.4 points, or 1.0 per cent, higher at 15,314.70, while the BSE-Sensex closed at 52,154.1, up 1.2 per cent or 609.8 points.

Here are the major movers in today’s session:

Banks power gains
Since the announcement of the Union Budget, shares of banks have been on a tear and the same trend kickstarted the week as investors see possibility of strong loan growth in the coming quarters as the rebound in the economy gathers pace. Nifty Bank registered another record high and closed 3.3 per cent higher.

NBFCs up as borrowing cost concerns ebb
Shares of non-bank lenders were among the biggest winners on the Street as concerns over rising borrowing costs ebbed in the wake of RBI’s messaging that it may not tolerate the 10-year bond yield, which acts as a benchmark for interest rates in the economy, inch above the 6 per cent mark.

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Srei Infra tanks on weak Q3 numbers
Shares of Srei Infrastructure Finance plummeted 6 per cent after the company reported weak earnings for the quarter ended December. The company reported a net loss of over Rs 3,800 crore for the December quarter as against a net profit of Rs 60 crore in the year-ago period.

Motherson Sumi zooms
Shares of the auto ancillary extended their stellar gains from Friday by rising another 7 per cent as investors have turned optimistic over the company’s prospects in the wake of its stronger-than-expected December quarter earnings.

Tata Motors rises on JLR’s EV dreams
Shares of Tata Motors jumped over 2 per cent after arm Jaguar Land Rover revealed its plan to become a net zero carbon emission company by 2039 and fully embrace electric vehicles. Future models of Jaguar will be built exclusively on a pure electric architecture, Tata Motors said in an exchange filing.

What gave buy signals?
As many as 46 stocks listed on the National Stock Exchange gave buy signals today based on MACD indicators including prominent names like RBL Bank, Pfizer, NIIT and Tanla Platforms.

What’s ahead for the market?
Positioning by traders in the options contracts of the Nifty50 index suggested that they anticipate more gains in the coming sessions. Traders aggressively added bullish positions in the out-of-money call options of the benchmark.

“Markets have resumed the trend after a week-long consolidation phase and we are now eyeing the 15,500 mark for Nifty. With no major events, participants should keep a close watch on global markets for cues. Also, maintain focus on the selection of stocks and avoid a contrarian approach,” said Ajit Mishra, vice president of research at Religare Broking.

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