Bank stocks give Sensex 280-point lift after Supreme Court verdict on loan relief

NEW DELHI: Benchmark indices on Tuesday ended with gains as the Supreme Court denied an extension to the loan moratorium period and said a waiver of complete interest is not possible, sending heavyweight banking stocks higher.

In the last few weeks, the market has made volatile movements as rising bond yields and increasing Covid-19 infections in India and Europe spooked investors. However, as the pace of vaccination increases, traders hope the situation will improve.

The 30-share pack Sensex gained 280.15 points or 0.56 per cent to close at 50,051.44. The index gyrated in a 602.73-point range during the session. Its broader peer NSE Nifty advanced 78.35 points or 0.53 per cent to settle at 14,814.75.

“Cement stocks continue their upward momentum for the second consecutive day after the lower house approved the amendments to the MMDR Act. With the interest waiver case on loan moratorium decided today, investors value picked on PSU banks selectively. In the broader market, fertiliser stocks saw demand on receipt of subsidy payments,” said S Ranganathan, Head of Research at LKP Securities.

Market at a glance

  • Bank stocks gain as SC denies pandemic interest waiver on loans
  • Mid-cap stocks outperform for second straight day; Nifty Midcap emerges top gainer
  • Cement stocks among top blue chip gainers; Shree Cement up 5%
  • Oil & gas explorers end in the red amid a sharp fall in crude oil prices
  • Adani Group stocks shine; four of them hit fresh 52-week highs

Among the blue chip stocks, Shree Cements was the top gainer, rising 4.68 per cent. UltraTech Cement, Divi’s Labs, HDFC Bank, IndusInd Bank, ICICI Bank, Titan and Adani Ports were other gainers.

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“We feel banking might help the index inch up further, but negative sentiment due to the rise in the Covid-19 cases and mixed global cues would cap the upside. We reiterate our cautious approach and suggest preferring hedged positions.”

— Ajit Mishra, Religare Broking

Hindalco was the top loser in the Nifty pack, falling 2.43 per cent. ONGC, Power Grid, GAIL, ITC, M&M, NTPC, Sun Pharma, Hero MotoCorp and HDFC were other scrips that ended in the red.

Broader market indices ended with gains, outperforming their headline peers. Nifty Smallcap added 0.36 per cent and Nifty Midcap rose 0.87 per cent. Nifty 500 — the broadest index on NSE — climbed 0.64 per cent.

Bank of India, Adani Enterprises, Union Bank of India, Radico Khaitan, IDBI and Affle India were top gainers from the mid- and small-cap indices, climbing in the range of 5-10 per cent.

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Top picks

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Aster DM Healthcare, Dixon Technologies, MCX, Future Retail, Endurance Technologies and Oberoi Realty were major losers from the broader market space, falling in the range of 2-5 per cent.

The sectoral matrix on NSE was mixed. Nifty PSU Bank was the top gainer, rising 2.91 per cent. Nifty Private Bank, Nifty Bank and Nifty Realty were among other major gainers. Nifty Metal, Nifty FMCG and Nifty Media ended the day in the red.

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Overall market breadth was in favour of gainers as 1,668 stocks ended in the green, while 1,292 counters settled with cuts. As many as 166 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 52 stocks hit 52-week lows, mostly from the micro-cap space. About 315 stocks hit upper circuit limits and 263 lower circuit limits.

European markets were trading lower at the last count. London-based FTSE was down 0.29 per cent while Paris and Frankfurt declined 0.61 per cent and 0.46 per cent, respectively. Barring Singapore, which added 0.12 per cent, Asian equity markets ended with cuts.

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