Friday Broader Market Rally: Financial Services, IT and Metals Stocks Lift Nifty50

Mumbai, July 10: Stocks in Financial Services, Information Technology and Metals sectors led gains in Friday’s broader market rally, with all three sectoral indices posting sharp gains even as the intra-pack moves were far from uniform. Banks and insurance companies extended Thursday’s strong gains, IT stocks were sharply mixed between lagging large-caps and outperforming mid-tier names, while metal stocks rallied broadly with smaller names surging ahead. Here are key points driving each theme and stocks leading the moves: 

Financial Services 

Nifty Financial Services climbed 1.36% on the day and Nifty Bank was even stronger with gains of 1.47%. Insurers and private sector lenders were leaders in the pack, with insurance stocks outperforming pure play lenders so far in the session and non-bank financiers participating as well. Today’s move is being interpreted by traders as a continuation of Thursday’s sharp rally in the sector, rather than being triggered by any fresh event. Markets are rotating back into BFSI stocks following some recent weakness. 

• Jio Financial Services (JIOFIN): Rs 241.68 up 3.56% from Rs 233.37
• HDFC Life Insurance (HDFCLIFE): Rs 568.80 up 3.07% from Rs 551.85
• SBI Life Insurance (SBILIFE): Rs 1,861.00 up 2.16% from Rs 1,821.70
• Axis Bank (AXISBANK): Rs 1,324.20 up 2.13% from Rs 1,297.60
• Bajaj Finance (BAJFINANCE): Rs 1,019.80 up 1.59% from Rs 1,003.80
• ICICI Bank (ICICIBANK): Rs 1,402.50 up 1.58% from Rs 1,380.70

Information Technology 

Nifty IT index is up 1.88% on the day, but the major moves are being driven by mid-tier IT stocks rather than the sector’s largest members. Oracle Financial Services Software and Persistent Systems both jumped over 4.5%, while LTIMindtree gained more than 4%. Large-cap IT bellwethers Tata Consultancy Services, Infosys and HCLTech are lagging the broader index gain and trading up about 1% each. It appears investors are favouring mid-cap IT growth stories over big-cap exporters today. 

• OFSS (Oracle Financial Services Software)(OFSS): Rs 11,646.00 up 4.60% from Rs 11,134.00
• Persistent Systems (PERSISTENT): Rs 5,050.60 up 4.57% from Rs 4,829.90
• LTIMindtree(LTM): Rs 4,015.60 up 4.18% from Rs 3,854.40 
• Mphasis (MPHASIS): Rs 2,323.20 up 2.74% from Rs 2,261.30
• Coforge(COFORGE): Rs 1,502.90 up 2.34% from Rs 1,468.60 

The big IT losers are large-cap stocks. Tata Consultancy Services (TCS) is up just 1.02% at Rs 2,070.40, Infosys (INFY) has risen 1.47% to Rs 1,066.20, and HCLTech (HCLTECH) is up 1.14% at Rs 1,163.50. 

Metals 

Nifty Metal jumped 1.48% on the day in a rally that is broader than either of the two other sectors mentioned above. Metal stock gains were spread across steel, non-ferrous and metal mining stocks. Leading the index today is Lloyds Metals while Adani Enterprises and APL Apollo Tubes are also on top of the gainers list. Steel stocks Tata Steel and JSW Steel are also participating in the move but with smaller gains than smaller counters. 

• Lloyds Metals (LLOYDSME): Rs 1,798.90 up 3.08% from Rs 1,745.10
• Adani Enterprises (ADANIENT): Rs 3,164.70 up 2.63% from Rs 3,083.60
• APL Apollo Tubes (APLAPOLLO): Rs 1,832.00 up 2.58% from Rs 1,785.90
• Hindustan Copper (HINDCOPPER): Rs 498.75 up 2.53% from Rs 486.45
• Jindal Steel & Power (JINDALSTEL): Rs 1,050.30 up 1.99% from Rs 1,029.80

Vedanta (VEDL) is the only loser in the pack, up 0.42% at Rs 272.50, while Hindalco Industries (HINDALCO) is a bigger loser on the index, gaining only 0.73%, suggesting India’s largest non-ferrous metals companies haven’t fully joined the broader rally. 

Broadly speaking, today’s market rally is a healthy one. Nifty 50 is up 1.05% while Nifty Midcap Select and Nifty Smallcap 100 indices are outperforming with advances of 1.17% and 1.66%, respectively. India VIX relaxed today, down 8.55%, which points to lower volatility even as investors continue to watch Iran situation unfold. 

Source:

•  https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20IT
• https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%20METAL