Auto, metal stocks rally: Sensex's 281-point surge finally washed away

Caution Amid Uncertainty Over US Debt Ceiling Raise

Nifty up 34 points to 18348 : Selling in capital goods stocks : Selective buying in small, mid cap stocks

Mumbai: In contrast to the overall softness amid caution in the global markets as the deadlock on raising the debt ceiling in the US is yet to be resolved, Indian stock markets continued their bullish streak today with foreign funds and local funds continuing to be buyers. The positive factor of increasing liquidity in the banking system following the Reserve Bank of India's announced decision to withdraw the Rs.2000 currency note, retail investors' shareholding in the stock markets in the coming days led to renewed buying in local fund stocks yesterday. Along with this, with the overall encouraging season of corporate results ending March 2023 and the possibility of re-rating of stocks in the coming days due to the positive outlook of many companies, the funds initially saw valuation increases in Adani Group, Finance, Pharma, Auto stocks. Of course, the initial improvement was eventually washed away as funds booked profits in capital goods, IT stocks on the rise today. Sensex increased by 281.51 points in the beginning and ended by 18.11 points to close at 61981.79. Nifty spot rose by 95.55 points in the beginning and finally rose by 33.60 points to close at 18348.

Auto stocks continue to rise

Automobile company stocks were seen buying by funds today. Balakrishnan Industries rose by Rs.115.05 to Rs.2405, Motherson Samvardhan rose by Rs.1.29 to Rs.56.27, Motherson Sumi rose by Rs.1.38 to Rs.81.38, TVS Motor rose by Rs.21.15 to Rs. 1260.45, Eicher Motors increased by Rs.49.45 to Rs.3593.55, Tata Motors increased by Rs.6.15 to Rs.528.50, Cummins India increased by Rs.17.15 to Rs.1684, Hero Motocorp increased by Rs.14. 95 to Rs.2707, Maruti Suzuki rose by Rs.43.50 to Rs.9200.90. The BSE Auto Index rose 204.31 points to close at 32185.99.

Strength in Metals

Funds in metal-mining stocks were picking today. Vedanta yesterday declared a first dividend of Rs 18.50 per share for the financial year 2024, and the stock rallied to Rs 293 to end at Rs 288.35. While APL Apollo increased by Rs.52.45 to Rs.1155.05, SAIL by Rs.82.65, Tata Steel by Rs.105.70, Coal India by Rs.1.55 to Rs.239.90, Hindalco by Rs.2.50 increased to Rs.410.20. The BSE Metal Index rose 112.26 points to close at 19655.27.

Profit Booking in Capital Goods Shares

BSE Capital Goods Index fell 232.75 points to close at 36527.57 as funds booked profits in capital goods-power stocks today. LG Equipment increased by Rs.18.90 to Rs.538.55, Grindwell Norton decreased by Rs.60.40 to Rs.2011.45, Carborundum decreased by Rs.29.10 to Rs.1191.05, Teamcan decreased by Rs.52.90 to Rs. 3184.20, Hindustan Aeronautics fell by Rs.50.30 to Rs.3050.60, Polycab fell by Rs.45.30 to Rs.3385.65, Larsen & Toubro fell by Rs.19.40 to Rs.2197.15.

Selective buying in healthcare-pharma stocks

Fund selection in Healthcare-Pharmaceuticals companies stocks was today. Vimta Labs increased by Rs.41.20 to Rs.418.40, Gland Pharma increased by Rs.46.85 to Rs.940.35, Divi's Lab increased by Rs.120.35 to Rs.3385.90, Strides Pharma increased by Rs.11.45 368.95, Lincoln Pharma increased by Rs.12.90 to Rs.441.95, Panacea Biotech increased by Rs.2.80 to Rs.119.70, Venus Remedies increased by Rs.3.90 to Rs.202.50.

Profit booking in small, mid cap after initial surge

Sensex, Nifty based today surged with cautious shocks in funds, small, mid cap, cash stocks of players showing a surge in early profit booking as the market breadth turned negative due to widespread selling. Of course, attractiveness remained in selected stocks. Out of the total 3624 scrips traded in BSE, the number of gainers was 1707 and the number of decliners was 1813.

FII's purchase of Rs.182 crore, DII's purchase of Rs.397 crore

Foreign Portfolio Investors-FPIs, Foreign Institutional Investors-FIIs made a net purchase of Rs.182.51 crore worth of shares in the cash segment today-Tuesday. A total of Rs.7647 crore was sold against a total purchase of Rs.7829.51 crore. While DII-domestic institutional investors made a net purchase of Rs.397.29 crore. A total of Rs.5145.80 crore was sold against a total purchase of Rs.5543.09 crore.