Small cap stocks rise again
Small Cap Shares: After undervaluing funds in large cap shares today, fund majors once again led the rally with aggressive buying in small cap shares. Funds held valuations today with low portfolio turnover after small, mid-cap stocks declined following warnings about valuations and fundamentals in analysts’ reports. Small-cap stocks witnessed broad-based buying as the growth story of some bullish funds continued today as India’s retail inflation eased along with better-than-expected industrial production growth data. Simultaneously, following signs of improvement in credit and inflation conditions, China reduced its reserve ratio for the second time this year and foreign funds shifted to metal-mining stocks as well as automobiles, IT-software. Made favorite purchases in services. Technology stocks and oil-gas, healthcare stocks. Nifty 50 Spot Index with two-way volatility was 20167. At the end of the volatility, which created 65 new record highs, it closed 33.10 points higher at a new record high of 20,103.10. While the Sensex went up to 67771.05 and finally closed at 67519 with a rise of 52.01 points.
Funds made big purchases in auto company shares today amid news of new opportunities for the automobile industry. Balkrishna Industries rose by Rs 95.35 to Rs 2496.15, Tube Investments rose by Rs 108.05 to Rs 3374.75, Mahindra & Mahindra rose by Rs 39.40 to Rs 1576.20, Eicher Motors rose by Rs 58.85 to Rs 3379.10. MRF rose by Rs 1766.95 to Rs 1,10,750, TVS Motor rose by Rs 13.30 to Rs 1466.35, Bosch rose by Rs 107.15 to Rs 19,481. BSE Auto Index closed 342.75 points higher at 36617.60.
Market conditions again remained positive as index based Nifty continued to create new history with heavy buying in small cap stocks and selective traction in mid cap stocks. Of the total 3804 stocks traded on BSE, the number of gainers was 2446 and the number of decliners was 1202.
With India imposing anti-dumping duty on import of certain steel products from China on one hand and recovery in China coupled with stimulus announcements and rising demand in the domestic infrastructure sector on the other, funds were bullish on metal-mining stocks. NMDC rose by Rs 7.95 to Rs 150.20, Hindalco rose by Rs 14.45 to Rs 497.75, SAIL rose by Rs 2.71 to Rs 98.62. BSE Metal Index closed 322.12 points higher at 23,480.55.
International oil prices continued to rise, with Brent reaching a 10-month high of $92.88 and New York-Nymex crude at $89.53, as a result of Russia’s crude production-supply cuts. Oil-gas stocks remained the favorite buy today. Petronet LNG was up by Rs 7.75 at Rs 243.95, ONGC was up Rs 3.95 at Rs 187.85, IOC was up Rs 1.68 at Rs 94.62, BPCL was up Rs 3.50 at Rs 358.95.
The spread of bullishness in shares increased today due to increase in valuations in shares along with index based rise, total market capitalization of BSE listed companies increased by Rs 92 thousand crore in a day to Rs 322.17 lakh crore.
Foreign portfolio investors-FPIs, FIIs made net purchases of shares worth Rs 294.69 crore in cash today-Thursday. There was sale of Rs 9575.31 crore against total purchase of Rs 9870 crore. While DII-domestic institutional investors made a net sale of shares worth Rs 50.80 crore. There were sales of Rs 6993.94 crore against total purchases of Rs 6943.14 crore.
Healthcare-pharmaceuticals stocks were also the fund’s choice today. Sigachi Industries increased by Rs 24.25 to Rs 392.75, Gujarat Themis increased by Rs 50.85 to Rs 857, Narayan Hoodalya increased by Rs 59.85 to Rs 1094.80, Themis Medicare increased by Rs 87.75 to Rs 1698.60, Panacea Biotech increased by Rs 7.25 to Rs 140.50, Granules India increased by Rs 14. Tax Rs 334.50, Dr. Lal Pathlab rose by Rs 71.25 to Rs 2312.30.
