Below is an excerpt of Udayan Mukherjee's comments of the day's trade on CNBC-TV18.
It was a strong close to the trading week on Dalal Street.
Blue chips commodity stocks like ONGC, Hindalco and Sesa Goa, shined in trade today and carried the Nifty past the 5,880 mark. The Sensex gained over 130 points to close just above the 19,600 mark.
Banks were in top form, with SBI and HDFC clocking over 2% gains.
Auto stocks too found great momentum. Maruti led the way with a 3% rally. Hero Honda too was back to winning ways after yesterday's pause.
It was a range-bound kind of trade today. Maybe the market wanted to consolidate after yesterday’s moves. Also, it was a long weekend it was going into, so maybe it considered it prudent not to extend itself too much ahead of the three day weekend. So we had a range-bound kind of session between 5,850 and 5,900, for most part of it. Market just bobbed around a little bit and finally closed 30 points higher.
Of course, it was helped on by commodities today. Globally, the weakness of the dollar index is egged on commodities. We could see the impact on names like ONGC, Sesa Goa, Hindalco, Sterlite and JSPL — that was a segment, which really revved up the market.
Banks also did well today. State Bank of India after a long time put on a couple of percentage points. HDFC and HDFC Bank were quite active as well and a couple of those auto names like Maruti and Hero Honda did well as well.
Reliance remained quite range-bound on the day of its results but TCS reacted a bit. The results did not have any positive surprise, unlike the last few quarters and the stock had run up quite a bit so it just adjusted a little bit, a couple of percentage points post the event. (Here is how the numbers looked)
Capital goods was the one space, which looked a bit wobbly today. So BHEL, Siemens, other largecap names like GMR and IRB Infra also came down today.
In fact, the market breadth was not special. We had more declining stocks compared to advancing names today. The midcap index lagged the Nifty and the Sensex clearly but there were pockets of outperformance. So, names like Arvind, Alok and S Kumars in the textile space along with Apollo Tyres, Ceat and MRF in tyres looked pretty impressive. The odd winners like VIP, Lovable Lingerie, ING Vysya Bank — those names all looked pretty good today.
Some losers like Indiabulls Realty, Kanoria Chemicals particularly and PFC and KRBL also closed on the wrong side today.
But otherwise quite day, but it's been a good comeback during the course of the week. Earnings have largely been good this week compared to what we saw on Friday, last with Infosys. That's the reason that the Nifty has been able to comeback quite smartly from 5,700 to 5,900 kinds of levels again.
