Daily Big Picture : Nifty Regains Momentum; Nifty PSU Banks Post MTD Return of 17%

Today’s Action

Nifty, +1.1%; Sensex, +1.1%; Model Portfolio, +1.0%; MSI Ind 47, +1.4%; Nifty Midcap, +1.0%; Smallcap, +0.9%.

Daily Market Review

Market Status: Rally Attempt

The Nifty and the Sensex each rallied 1.1% supported by a strong momentum in the second half. Midcaps (+1.0%) and Smallcaps (+0.9%) also gained in line.

On the sectoral front, PSU banks (+3.5%) posted strong gains whereas Realty (+1.5%) and Pvt Banks (+1.3%) continued their momentum. Barring Nifty Metal (-0.3%) and Nifty Auto (+0.2%), all other indices ended with good gains. Nifty IT (+1.5%) and FMCG (+1.2%) joined the rally today after consistently underperforming in recent few trading sessions. Today’s rally was inclusive as Nifty 500 also posted strong gains (+1.1%).

With respect to market direction, we will look for a legitimate follow-through day after which we will change the market status to a Confirmed Uptrend. We will also keep a watch on benchmark indices to ascertain market strength.

The advance-decline ratio was in favor of gainers. Of the 2,087 stocks traded on the NSE, 1,126 advanced, 625 declined, and 336 remained unchanged.

Stocks in News

Bank Of Baroda in a regulatory filing disclosed that the government has decided to infuse Rs 5,042 crore in the bank. The decision was conveyed by the finance ministry on Wednesday. Also, the Supreme Court denied to put a stay order on the bank’s proposed merger with Dena Bank and Vijaya Bank, which will now be effective from April 1. The stock ended 7% higher.

Infosys announced in a statement that it will acquire a 75% stake in ABN AMRO’s mortgage administration services unit. The deal will cost around $144M and will close by Q1 FY 2020. Through this, the Company aims to build its mortgage servicing capabilities in Europe.

Leaders Up on Volume: Tube Investments Of India Ltd (+2.8%), Pvr (+2.3%), and RBL Bank (+2.4%)

Leaders Down on Volume: Max Financial Svs. (-2.3%), and Bajaj Finserv (-0.4%)

What do you think? Please email us any questions or comments.

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