Sensex Today Gains 213 Points; Nifty Ends Above 19,400

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After opening the day on a negative note, Indian share markets reversed course as the session progressed and ended higher.

Earlier in the day, benchmark indices were volatile, tracking mixed global market trends and continuous foreign fund (FII) outflows. According to exchange data, FIIs offloaded equities worth Rs 4.9 bn yesterday.

As the session progressed, losses were erased as xx and xx stocks witnessed buying.

At the closing bell, the BSE Sensex stood higher by 213 points (up 0.3%).

Meanwhile, the NSE Nifty closed higher by 48 points (up 0.3%).

ICICI Bank, SBI, and L&T were among the top gainers today.

Jio Financial Services, Sun Pharma, and Bharti Airtel, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 19,426, up by 112 points, at the time of writing.

The BSE MidCap index gained 0.4% while the BSE SmallCap index advanced 0.6%.

Sectoral indices ended on a mixed note with stocks in the banking sector, capital goods sector, and metal sector witnessing most of the buying.

While power stocks and FMCG stocks witnessed selling.

Shares of Cera Sanitaryware, Sundaram Clayton, and 3M India hit their respective 52-week highs today.

Shares of aerospace companies, including L&T, Paras Defence, among others were also in focus ahead of the Chandrayaan-3 launch.

Asian share markets ended higher. The Hang Seng gained 0.3% while the Nikkei rose 0.5%. The Shanghai Composite fell 1.3%.

European stocks edged higher today after mixed Asia trading and a retreat on most US markets.

The rupee is trading at 82.77 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 58,514 per 10 grams.

BHEL Manufactures Indigenous SCR Catalysts

In the latest developments from the power sector, Bharat Heavy Electricals (BHEL) today said it has successfully manufactured the first set of indigenous SCR Catalysts for limiting NOx emissions from thermal power plants.

These selective catalyst reactors (SCR) were hitherto being imported and this is a significant milestone under the 'Make in India' initiative of the government.

BHEL has set up an SCR catalyst manufacturing facility at its SBD unit to cater to NOx abatement in thermal power stations.

Note that shares of BHEL have seen a sharp run-up in recent days. Chartist Brijesh Bhatia explains the technical reasons behind the run-up.

On the daily chart of BHEL, a significant breakout occurred above the previous high at Rs 94, which was demarcated by a horizontal trendline.

This breakout signified a potential shift in the stock's trajectory.

Daily Chart

(Click on image to enlarge)

The rising Bollinger Bands also provided insights into the stock's price movement. The buy-on-dips strategy was validated as the stock consistently bounced off the middle and lower Bollinger Bands.

The recent reversal from the lower band indicated a strong support zone within the rising Bollinger Band, emphasizing its importance as a potential turning point.

In the derivatives market, a specific call option, the 100CE, exhibited significant activity. Call writers had established a resistance level of Rs 100.

However, the short-covering phenomenon led to a reversal in this scenario.

As the call writers unwound their positions, the Open Interest in the 100CE option dropped by approximately 20%, declining from around 1,419 contracts to about 1,130 contracts.

This reduction in Open Interest indicated that the call writers were covering their short positions, resulting in a bullish sentiment shift.

BEML Soars to New High on Defence Orders

Moving on to news from the defense sector, shares of BEML jumped nearly 5% and hit a new 52-week high of Rs 2,184 today after the company bagged an order worth Rs 1 bn from the Ministry of Defence.

Earlier this month, the company also secured the Letter of Acceptance from Bangalore Metro Rail Corporation (BMRC) for the supply of Rolling stock contract 5RS-DM valued at approximately Rs 31.8 bn.

In its first quarter for FY24, the company's net loss narrowed to Rs 750 million (m) from Rs 820 m in the same quarter last fiscal. Revenue, however, fell 14% YoY to Rs 5.8 bn.

By exporting its products to over 38 countries in Asia, Africa, Europe, and Latin America, the company is looking to increase its exports in the coming years by targeting new markets and developing new products.

The company is planning to invest Rs 9 bn in expanding its production capacity for metro coaches.

Furthermore, the company is looking to improve its operational efficiency by streamlining its processes and reducing costs. The company is also looking to invest in new machinery and equipment to improve its production capacity.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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