Sensex closes at 44,180, Nifty at 12,938: Mahindra & Mahindra biggest gainer, HUL lagged behind

Sensex, Nifty close at new highs today. Benchmark equity indices showed a quick recovery in the latter part of the session on Wednesday to end at record highs with banks, financials and auto stocks occupying the top layer. Sensex added 227 points to close at 44,180, while Nifty locked in 0.5% higher at 12,938. Mahindra & Mahindra (M&M) was the biggest gainer, soaring up 11%, while Bajaj Finserv closed around 7% higher and HUL lagged behind. On the Sensex, 15 stocks advanced and an equal number declined. On Nifty, 26 shares stepped up and 24 slid down. Mid-cap and small-cap stocks were the special highlights in trade today.

Shares of Lakshmi Vilas Bank were stuck at the 20% lower circuit, fearing that shareholders may lose their equity value if the Reserve Bank of Bank’s proposal to merge LVB with DBS India goes through. BSE benchmark Sensex boomeranged back after a day’s low following a rally in select private lenders. HDFC twins, Axis Bank and IndusInd Bank shares sped up after the SC deferred moratorium hearing to November 19. HDFC Bank stock also hit 52-week high along with Adani Gas and Tata Motors.


The top gainers were Adani Gas Limited, SpiceJet Limited, Hatsun Agro Products Limited, WABCO India Limited and M&M Limited. The top losers were Astral Poly Technik Limited, Thyrocare technologies Limited, Just Dial Limited, NDR Auto Components Limited, Mas Financial Services Limited. Shares of M&M secured more gains for the third straight session on Wednesday after the company on Tuesday announced it will manufacture its new tractor series K2 exclusively at its Zaheerabad facility in Telangana, where it will bring incremental investments of Rs 100 crore and double employment in the plant by 2024.

RIL, IT and FMCG stocks kept gains in check. BSE Auto, Capital Goods paced up over 3% each and SpiceJet shares increased 13% on HSBC upgrade. ONGC has not budged since results were announced last week and only declined as much as 45% since its pre-COVID-19 high.

“The markets opened on a flat note and after a knee jark movement down continued to trade in the green rest of the day. We view 12,930-12,950 as a potential supply zone and the market is currently trading near to it. While technical evidence from momentum indicators like RSI, MACD is not supporting the rally and cyclically market is about to enter into a corrective phase, the investor should use the rally to scale down their position gradually. On the downside, 12770-12790 is likely to act as a support zone” as opined by Ashis Biswas, CapitalVia Global Research Limited.