Morning market: BSE Sensex up by 600 pts, Nifty 50 at 21,600 level

Benchmark indices rebounded on Friday; BSE Sensex traded at 71,803.16, up by 616.3 pts or 0.87 per cent, and Nifty 50 at 21,641.80, up by 179.55 pts or 0.84 per cent as of 9.48 am.

All sectors traded in the green. Nifty Financial Services was at 20,540.20, up by 1.06 per cent; Nifty Metal at 7,706.55, up by 1.02 per cent; Nifty IT at 37,101.45, up by 1.01 per cent; and Nifty Bank at 46,097.10, up by 0.84 per cent.

Commenting on the Nifty outlook, Anand James, Chief Market Strategist at Geojit Financial Services, said, “The pullback above 21490 did succeed to bring in positivity, but as expected, no dramatic short covering was seen. We will begin the day on a positive note but would require consistent trades above 21440 to maintain that, or a direct push above 21520 to pursue a recovery move to 21800. As maintained yesterday, a vertical rise beyond the same is less expected. Alternatively, slippage past 21400 will push the trend back onto the 21200-20850 trajectory, but a collapse is less expected today.”

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “An important trend in the market which has implications for retail investors is the revival of the tug of war between FIIs and DIIs. FPIs have sold equity massively for ₹20480 crores during the last two days. This is partly in response to the rising bond yields in the US where the 10-year yield has risen to 4.16 per cent and partly due to the high valuation in the Indian stock market.”

“Mid and small-cap segments are strong despite excessive valuations because there is sustained buying and no selling pressure from FIIs. This anomaly will be corrected in due course,” Vijayakumar added.

On the NSE, the top gainers were Titan, ONGC, Axis Bank, TCS, and Tech Mahindra. Meanwhile, major losers were IndusInd, Reliance, Apollo Hospitals, Sun Pharma, and Cipla.

Major developments in the morning market include Coforge Ltd entering into a share purchase agreement with its wholly owned subsidiary, Coforge DPA Private Limited, for the transfer of 83.2 per cent equity shares of Coforge SF India Private Ltd to the acquirer and the remaining 16.8 per cent of equity shares of Coforge SF India Private Ltd shall be transferred by Coforge SmartServe Limited to Coforge DPA Private Limited. Coforge stock traded at ₹6,460 on the NSE, down by 0.41 per cent.

Steiner AG, Switzerland, a material subsidiary of Hindustan Construction Company, has divested its entire equity interest under the share purchase agreement entered into with Demathieu Bard, a company headquartered in France. Hindustan Construction stock rose by 1.08 per cent on the NSE, trading at ₹32.70.

Zydus Lifesciences subsidiary has entered into a licensing and supply agreement for Palbociclib Tablets, and the stock rose by 1.02 per cent, trading at ₹716.10.

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