Benchmarks ended a range around a flat line on Tuesday, even as broader markets hit new record highs as equity-specific stocks dominated stock markets today. The 30-stock BSE barometer stood at 52,275 levels, down 53 points or 0.10%, while the Nifty50 closed shop at 15,740 points, down 11.5 points or 0 , 07%.
Tata Motors, Tech Mahindra, Bharti Airtel, Indian Oil Corporation, HCL Tech and Infosys were the main index winners. Hindalco, Tata Steel, JSW Steel, Kotak Bank, HDFC and SBI, meanwhile, were the main laggards.
In the broader market space, the BSE MidCap index hit a record high for the fifth day in a row, at 22,822.6 levels, and ended the day at 22,769.5 levels, up 0.36 %. Counterpart SmallCap, on the other hand, closed 0.9% higher at 24,827 levels after hitting a new high of 24,868 earlier in the day.
Dr VK Vijayakumar, chief investment strategist at Geojit Financial Services, however, warns investors against “over-rallying” the broader market as any market correction is felt more in small and mid-cap stocks. due to the lack of depth in the segment.
Individually, Adani Power hit a record high of Rs 152, climbing 20% in intra-day trading, thanks to large volumes, while Torrent Power and Tata Power gained more than 4% each on BSE. Powered by these, the S&P BSE Power Index hit a 10-year high of 3,008, a level last seen in January 2011.
In addition, shares of Piramal Enterprises climbed 11 percent to 2,183 rupees on BSE in intraday trading, rising 17 percent in two days, after the Mumbai National Company Law Tribunal (NCLT) approved the Piramal group’s resolution plan for the besieged DHFL. The latter’s action was also blocked in the upper circuit for the second day in a row, up 10% to Rs 22.85 on BSE.
Finally, Laurus Labs shares hit a new high of Rs 642, up 12% from BSE. The stock was trading higher for the eighth consecutive trading day and outperformed the market by surging 73% in the past three months after the company’s promoters cleared most of the pledged stock by selling their stake.
On the sector front, metals and financials remained under pressure with the Nifty Bank, PSU Bank and Metal indices closing 1.4 percent lower. On the upside, the Nifty IT, FMCG and Pharma indices each gained around 1%.
In the primary market, the growth versus profitability debate in the context of Zomato already seems to be intensifying ahead of the company’s initial public offering (IPO) scheduled for later this year. According to Jefferies analysts, as one group of investors examine Zomatos’ growth indicators even at the expense of medium-term profitability, the other side is looking for a clear path to profitability. Potential competition from Amazon, Thrive, etc. is also on the minds of investors, as is the dynamic between Zomato and Swiggy, they said.
European stocks hit new highs on Tuesday, buoyed by travel and real estate stocks, but weak German industrial production data and doubts over the lifting of UK restrictions later this month have limited earnings. The pan-European STOXX 600 index remained stable after hitting a record high earlier, while the UK’s FTSE 100 gained 0.4%.
In Asia, Japan’s Nikkei ended down 0.3%, South Korea’s Kospi fell 0.13% and China’s Shanghai Composite ended down 0.5%.
Meanwhile, futures on all three of Wall Street’s major indices were mixed. The Dow Jones Futures fell 0.04% while the Nasdaq Futures rose 0.25%.