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Market trading with modest gains

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Capital Market
Last Updated : Feb 20 2018 | 2:50 PM IST

Stocks were trading with steady gains in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 103.25 points or 0.31% at 33,877.91. The Nifty 50 index was up 26.65 points or 0.26% at 10,405.05. Bargain hunting emerged on the bourses after the recent losses. Shares from oil & gas and FMCG sectors saw mixed trend.

Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade. Stocks extended early gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed gains soon after hitting intraday high in mid-morning trade. The market hovered with small gains in early afternoon trade. Indices trimmed gains after regaining strength in afternoon trade.

The S&P BSE Mid-Cap index was up 0.24%. The S&P BSE Small-Cap index was up 0.18%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was just about positive. On the BSE, 1,336 shares rose and 1,309 shares fell. A total of 139 shares were unchanged. Breadth was negative in early trade. It was strong in morning trade. It once again turned negative in mid-morning trade.

FMCG stocks saw mixed trend. Jyothy Laboratories (up 2.03%), GlaxoSmithkline Consumer Healthcare (up 1.81%), Godrej Consumer Products (up 2.59%), Britannia Industries (up 0.14%), Dabur India (up 0.38%), Marico (up 0.28%), Nestle India (up 1.13%), Tata Global Beverages (up 0.34%) rose. Bajaj Corp (down 0.06%), Colgate-Palmolive (India) (down 0.11%), Hindustan Unilever (down 0.12%) and Procter & Gamble Hygiene and Health Care (down 0.2%) fell.

Oil & gas stocks saw mixed trend. Among shares of oil exploration and production (E&P) companies ONGC (up 1.3%) and Oil India (up 0.58%) edged higher. Reliance Industries (down 0.25%) fell.

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Among PSU OMCs, BPCL (down 0.58%) and Indian Oil Corporation (down 0.05%) fell. HPCL (up 0.75%) rose.

Sun TV Network rose 2.8% to Rs 913 on bargain hunting after a recent slide. Shares of Sun TV Network fell 11.35% in three trading sessions to settle at Rs 888.15 yesterday, 19 February 2018, from its close of Rs 1,001.85 on 14 February 2018.

Gitanjali Gems was locked at 10% lower circuit at Rs 30.45, with the stock extending previous four session's slide after the company's promoter Mehul Choksi's name figured in the recently unearthed massive banking fraud in PNB. Mehul Choksi held 22.81% stake in Gitanjali Gems end December 2017.

Shares of Gitanjali Gems have slumped 51.55% in five trading sessions to its ruling market price of Rs 30.45, from its closing of Rs 62.85 on 12 February 2018, after Punjab National Bank (PNB) disclosed to the stock exchanges on 14 February 2018 about the detection of a massive banking fraud amounting to $1771.69 million (about Rs 11500 crore) in one of its branches in Mumbai.

The massive banking scam allegedly involves jeweller Nirav Modi as the prime accused in connivance with some PNB officials. The name of Mehul Choksi, promoter of Gitanjali Gems, also figured in this scam. Mehul Choksi is uncle of Nirav Modi. The Government of India has already directed investigative agencies for a probe into this scam.

Overseas, European stocks edged higher in early trade but gains among main national indexes remain limited as investors await for Wall Street to reopen after Monday's holiday break. Most Asian stocks fell today, 20 February 2018 in thin holiday trade as markets in China and Taiwan remained closed for the Lunar New Year holidays. US markets remained closed yesterday, 19 February 2018 in observance of President's Day.

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First Published: Feb 20 2018 | 2:32 PM IST

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