Home Market After Hours: Sensex movers & how RBI just changed debt fund outlook

After Hours: Sensex movers & how RBI just changed debt fund outlook


The domestic equity market ended higher on Wednesday after RBI hiked interest rates by 25 basis points. The S&P BSE Sensex closed 275 points up at 35,178, while NSEs Nifty50 closed 91 points, or 0.86 per cent, up at 10,684.

Out of the 50 Nifty constituents, 39 closed in the green, 10 in the red while one remained unchanged.

Here are the key shakers and movers of Wednesdays session:

Getting bigger
Shares of IDFC Bank and Capital First rallied up to 7.32 per cent after the former said it has received RBI's approval for the merger of Capital First, Capital First Home Finance and Capital First Securities with the company.

Rally in rate-sensitive stocks
After Hours: Sensex movers & how RBI just changed debt fund outlook
Banking, auto and real estate indices climbed ended in green after RBI hike interest rates by 25 basis points as widely expected. BSE Bankex closed 0.57 per cent up at 29,460, whereas BSE Auto index added 1.57 per cent to 24,841. The realty index on the exchange jumped 1.47 per cent to 2,147.

Sweet deal
Stocks of sugar producers ended mixed on Wednesday after the Cabinet okayed a Rs 8,000 crore bailout package for mills, which is seen to benefit 5 crore sugarcane farmers. The government fixed minimum selling price for sugar at Rs 29 per kg. The average ex-mill price of sugar is in the range of Rs 25.60-26.22 per kg. Thats below cost of production. Piccadily Sugar rallied over 17 per cent, followed by EID Parry (up 5 per cent) and Thiru Aroon Sugars (up 4.90 per cent). On the other hand, Simbhaoli Sugars and Dhampur Sugar Mills dipped up to 9.30 per cent.

Spurt in open interest
Balrampur Chini witnessed the biggest surge in open interest at 36.88 per cent, followed by NCC (24.33 per cent) and Repco Home (22.90 per cent).

[email protected] 52-week lows
As many as 259 stocks on the National Stock Exchange scaled fresh 52-week low despite a rally of nearly 0.90 per cent registered by benchmark equity indices. Some of the stocks in the list included Aban Offshore, Accelya Kale, Birla Corporation, BEML, Greenply Industries, Indo Count Industries, ICRA, Inox Wind, HCL Infosystems, HDIL, PNB Gilts and Sintex Industries. On the other hand, only Green Fire Agri Commodities hit fresh 52-week high in todays trade.

Asian peers mostly in green
Asian equity markets closed mostly higher on Wednesday as higher commodity prices lifted resource stocks and the Japanese yen weakened on solid US non-manufacturing activity data released overnight. Japanese shares ended higher, as technology stocks edged up after their US peers rallied. Chinese shares ended almost flat, as gains in transport and material firms were offset by losses in banking and real estate shares. Meanwhile, the markets in South Korea were closed on Wednesday for the Memorial Day holiday.

Nearly 50 stocks ready to crack
Momentum indicator Moving Average Convergence Divergence, or MACD, signalled downward crossover on as many as 47 counters on NSE. The list included BHEL, Tech Mahindra, Delta Corp, Jindal Stainless Hisar, Manali Petrochem and 3i Infotech.

Whats in it for debt funds?
Post the rate hike, Lakshmi Iyer, Chief Investment Officer ( Debt) & Head Products, Kotak Mutual Fund, said: “We were factoring in a rate hike with a neutral guidance. The market could rally a little from the current levels. We expected it to be either a hawkish pause or a dovish hike. Debt mutual fund investors should stick to the short-term debt funds or credit risk funds. We have been advising to stay away from the long duration funds. The advice remains the same,” Iyer said.

Most active stocks
Reliance Communications, IDFC Bank, PC Jeweller, Balrampur Chini and GMR Infra were the most active stocks in terms of volume while Tata Motors, PC Jeweller, HDFC Bank, Biocon and State Bank of India emerged as the most active stocks in terms of value.

Who moved my Sensex
ITC (up 1.23 per cent), Infosys (up 1.18 per cent) and State Bank of India (up 2.43 per cent) contributed the most to the rise in the 30-share index.

Original Article


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