Market Movers: UPL, NMDC soar; 55 stocks give buy signals

MUMBAI: Benchmark equity indices ended higher today, adding to the gains of last week as investors believe that global liquidity will remain ample given that the US Federal Reserve may remain accommodative for longer.

The disappointing US jobs data on Friday eased concerns that a hot US economy will force the Fed’s hand in tapering bond purchases and signaling interest hikes for next year. Accommodative Fed policy is good news for capital flows to emerging markets like India.

The gains were also boosted by signs that the new Covid-19 cases were reaching a peak as the rate of growth of daily cases has steadied in recent days. On Monday, Indian reported 366,000 new cases, the lowest in a week.

The Nifty50 index ended 0.8 per cent or 119.2 points higher at 14,942.35, while the BSE Sensex closed at 49,502.4, up 295.9 points or 0.6 per cent.

In the broader market, the gains were more prominent as the Nifty Midcap 100 and Nifty Smallcap 100 index rose 0.9 per cent and 1.5 per cent, respectively.

Here are the major movers in today’s session:
NMDC rallies as iron ore prices rise
Shares of the company rose nearly 10 per cent after iron ore prices in China surged past the $200 per tonne-mark in the face of rising supply-side issues. Further, the imposition of lockdown in Odisha is expected to crimp domestic supplies, which analysts believe could give the company an opportunity to raise prices in the coming weeks.

UPL soars on hopes of strong earnings
Shares of UPL surged 8 per cent after brokerage firm CLSA Asia-Pacific Markets made a case for strong earnings growth for the company in the coming quarters given the strong commentary by global peers in the agrochemical industry. Analysts expect UPL to report strong earnings for the quarter ended March on Wednesday.

Dabur India slumps on earnings disappointment
Shares of Dabur India ended 2 per cent lower after the company’s March quarter earnings underwhelmed investors. Brokerage firm Prabhudas Lilladher downgraded the stock to ‘Hold’ as it believes its earnings have peaked in the near term.

Over 250 stocks hit new highs
Shares of 253 companies listed on the National Stock Exchange hit their fresh 52-week highs in the session including Goodluck India, Sun Pharma Advanced Research, Praj Industries and Angel Broking, reflecting the underlying strength in the market.

What gave the ‘buy’ signals?
As many as 55 stocks listed on the NSE gave a buy signal based on the MACD indicators, including Hindustan Zinc, HDFC, Dr Reddy’s Laboratories, and Tech Mahindra.

What’s ahead for the market?
Traders sold the out-of-money Call options of the Nifty50 beyond the 15,000 strike price, suggesting that any upside in the index will be limited to that level in the coming sessions. In the futures segment, traders added long positions in the May contract as open interest rose 1.9 per cent on a provisional basis.

“We remain cautiously optimistic on the back of rotational buying in select index majors amid the rising Covid cases. Besides, buoyant global cues are also helping in limiting the downside,” said Ajit Mishra, vice president of research at Religare Broking.