Market Movers: Mid-, smallcaps defy bears; power stocks on a high; 73 stocks flash ‘buy’

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Mumbai: Equity benchmarks slipped lower on Thursday in sync with weak global equities as the sentiment weakened after US Fed’s minutes depicted a grim oulook for the economy.

The Fed’s minutes released on Wednesday raised doubts over US economic recovery, and signaled that the swift labour market rebound seen in May and June may have slowed, Reuters reported.

BSE’s Sensex dropped 1 per cent to 38,220, while NSE’s Nifty50 shed 0.8 per cent to 11,312.

“Indian stocks were hurt by the US Fed’s cautious view of the economy, US tensions with China and new clusters of coronavirus infections,” said Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers

“During the afternoon session, the markets briefly attempted to bounce back from day lows, but the strength did not sustain as profit booking emerged,” he said.

Here is a lowdown what happened in Thursday’s trade:

Power stocks jump
Shares of electricity distribution and generation companies outperformed the otherwise dull market with BSE Power and BSE Utilities indices rising 4.1 per cent and 4.2 per cent respectively. The government on Wednesday extended the power-sector liquidity infusion package and relaxed working capital lending limits by Power Finance Corp and REC for distribution companies.

State-run NTPC was the top Sensex gainer, as it rose 6.9 per cent to Rs 101.15. PowerGrid climbed 2.11 per cent to Rs 181.10. Adani Transmission jumped 10 per cent to Rs 270.10. Tata Power advanced 8.4 per cent to Rs 61.50

Midcaps and smallcaps party

BSE Midcap and Smallcap indices bucked the broader market trend and rose 0.9 per cent and 0.7 per cent, as investors looked for value in these packs amid concerns that the blue-chip stocks may have turned expensive. Among the midcaps, Varroc Engineering rose 17.8 per cent to Rs 320.10, while NHPC climbed 12.17 per cent to Rs 23.50. In the smallcap pack, Apcotex Industries and I G Petrochemicals jumped 20 per cent each to Rs 173.25 and Rs 273.25 respectively.

Aarti Drugs shares soar

Aarti Drugs approved bonus share issue in 3:1 ratio, sending the drugs and chemical maker’s shares soaring as much as 20 per cent to an all-time high of Rs 2,892.75. The company’s shares have jumped 400 per cent in the year so far.

Muthoot Finance plunges

Gold loan company Muthoot Finance dropped 5.4 per cent to Rs 1,187.90 despite robust June quarter earnings as brokerages expressed concerns that the valuations may have turned expensive. Muthoot Finance reported a 59 per cent rise in net profit at Rs 841 crore for June quarter even as disbursements slowed due to Covid lockdown.

Insider buy-sale: GSS Infotech jumps
IT firm GSS Infotech jumped 16.9 per cent to Rs 27.05., after promoter Rao Marepally Raghunadha Rao lapped up some more shares in the company, while investors including Nomura Singapore and Elara India Opportunities Fund pared their stake.

Stocks that scaled 52-week highs

A total of 176 stocks recorded 52-week highs on the BSE. They included 3i Infotech, Aarti Drugs, IG Petrochemicals, Jubilant Foodworks, Jindal Steel & Power, Neogen Chemicals, PTC Industries, Tata Coffee and Tata Communications, among others.

Stocks that hit their upper circuit limits

As many as 406 stocks hit their upper limit on the BSE. They included Adani Transmission, Repco Home Finance, Arvind Fashions, Future Lifestyle Fashions, Future Consumer and Lemon Tree Hotels, among others.

Stocks that flash buy signals
A total of 73 stocks sent out buy signals on BSE, as they crossed above the signal line on the MACD indicator. They included HDFC Bank, Future Consumer, Indian Oil Corp, GSS Infotech, Bank of Baroda and Mahanagar Gas, among others.

Where is Nifty headed?

Nagaraj Shetti, technical & derivatives analyst, HDFC Securities said while the overall uptrend status remains intact for Nifty, the short-term trend is slightly negative. “There is a possibility of minor weakness in the next one or two sessions with rangebound action. There is a higher chances of a bounce from the lower support at 11,200 level (Nifty) in the short term,” he said.

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