After Market: IndiGo flies high; Sun Pharma, YES Bank crack

NEW DELHI: Equity benchmarks Sensex and Nifty rallied for the third consecutive day on Thursday, backed by gains in heavyweights from IT, auto and banking sectors, as sentiment remained upbeat in the light of favourable CPI and IIP data.

In a double delight for the economy, official data showed industrial output increased at the fastest pace in almost a year in October and retail inflation eased to a 17-month low in November, brightening the prospects of an interest rate cut that would strengthen growth.

Besides, analysts said optimism that RBI would take steps to ease liquidity concerns has lifted the market mood. Positive global cues amid signs of easing trade tensions between the US and China also offered a leg-up to the market, while softer crude oil price helped the rupee gain strength.

Sensex ended the session 151 points, or 0.42 per cent, higher at 35,929, with 18 stocks advancing and 13 declining. Nifty rose 54 points, or 0.50 per cent, to 10,791, with 29 stocks closing in the green, 20 in the red.

Here’s are the key highlights of Thursday's session:

Sensex movers & shakers
Wipro, rising 2.64 per cent, emerged at the top performer among the Sensex stocks, followed by Infosys, Kotak Mahindra Bank, Maruti Suzuki and Larsen & Toubro. On the flip side, YES Bank, Sun Pharma, TCS, Tata Steel and Adani Ports finished as the top losers of the day.

InterGlobe Aviation flies 3%
Shares of InterGlobe Aviation (IndiGo) settled 3.16 per cent higher at Rs 1,059 on BSE after Morgan Stanley upgraded the stock rating to overweight from equal weight. As per the global financial firm, the earnings trough is behind for the company, valuation has become attractive, and competitive position of IndiGo has strengthened in this downcycle.

YES Bank cracks over 6%
Shares of YES Bank fell 6.48 per cent to Rs 174.70 after the bank said it was on track to name new MD and CEO within the RBI deadline. In a BSE filing, the bank said its Nomination & Remuneration Committee (N&RC) and the Board of Directors have finalised the recommendation for a non-executive part-time Chairman position and shall be seeking requisite approvals from RBI.

Sun Pharma declines 2%
Shares of Sun Pharma, India’s largest drugmaker, settled 2.12 per cent down at Rs 422, a day after the Securities Exchange Board of India (Sebi) confirmed reports that it had received a whistleblower complaint against the company.

219 stocks ready to rally
Momentum indicator moving average convergence divergence, or MACD, showed bullish crossovers on 219 counters on BSE. The stocks included IDFC Bank, Indian Oil Corporation, Punjab National Bank, Indiabulls Ventures, ONGC, Mahindra & Mahindra and Raymond. On the other hand, 30 stocks, including Jaypee Infratech, Oriental Veneer, Majestic Auto, Orient Press and Khadim India.

Overbought & oversold stocks
Momentum oscillator Relative Strength Index, or RSI, showed 47 stocks in the oversold zone on BSE. Among them were Arvind, IL&FS Transportation, Jindal Stainless, Punj Lloyd, Jash Dealmark and Sanjivani Parental. Meanwhile, Amrapali Industries, Maharashtra Scooters, Raasi Refractories and Franklin Industries were among the 23 stocks that slipped into the overbought zone on BSE.

Nifty forms a small bearish candle
Nifty closed above the 200-day moving average at 10,791 and formed a small bearish candle on the daily chart. “A small negative candle was formed on Thursday at the swing high of 10,838 with minor upper and lower shadows. Technically, this suggests those with long positions need to be cautious at higher levels. Some consolidation or minor profit booking is likely in the short-term, before Nifty notches up further gains,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.