Stocks in Focus: IT, Financial Services and Consumer Durables Lift Nifty on Tuesday

Mumbai, July 7: There were three sectors which were outshining others, while boosting Nifty 50 on Tuesday. Information Technology, Financial Services and Consumer Durables stocks were leading the markets higher. While IT and consumer durables continue to see broad-based buying at the index level, financial services continue to witness a selective move. Insurance stocks and selective NBFC stocks are rallying today while large private banks weigh down the headline sectoral index. Here’s what’s driving each theme and the stocks leading the moves:

Information Technology

The Nifty IT index is currently the top sectoral gainer of the day, up 2.41% so far. Buying is broad-based across the sector rather than being driven by a single counter. This comes as investors buy into battered IT stocks ahead of June-quarter results. Additionally, hopes that the US central bank may cut rates earlier than expected is also boosting software stocks that get a large part of their revenues from exports. Overall, the IT sector also ranks among the worst performers over the past one year. This makes the relative strength on some positive news all the more impressive.

• HCL Technologies (HCLTECH): Rs 1,169.90 up 3.15 from Rs 1,134.20
• Infosys (INFY): Rs 1,072.10 up 2.87 from Rs 1,042.20
• Tech Mahindra (TECHM): Rs 1,444.10 up 2.67 from Rs 1,406.50
• TCS (TCS): Rs 2,095.00 up 1.82% from Rs 2,057.60

Financial Services

The Nifty Financial Services index is currently flat-to-down on the day, with barely any moves at 0.03% lower. However, some stocks within the sector are surging even as large lenders weigh down the sectoral average. Insurance stocks are surging today as are select NBFC names, while HDFC Bank, ICICI Bank and Axis Bank trade lower. REC and PFC, power financing NBFCs related to infrastructure and energy stocks also trade lower. It seems investors are rotating into financial services names but choosing selective stocks rather than buying the sector outright.

• SBI Life Insurance (SBILIFE): Rs 1,835.00 up 2.65 from Rs 1,787.70
• HDFC Life Insurance (HDFCLIFE): Rs 572.75 up 1.52 from Rs 564.20
• Max Financial Services (MFSL): Rs 1,602.00 up 1.28 from Rs 1,581.80
• Jio Financial Services (JIOFIN): Rs 243.00 up 1.25% from Rs 240.00
• ICICI Lombard General Insurance (ICICIGI): Rs 1,803.70 up 1.02% from Rs 1,785.40
• Bajaj Finance (BAJFINANCE): Rs 1,039.40 up 1% from Rs 1,029.10

Consumer Durables

Nifty Consumer Durables index is currently up 0.89% on the day. The consumer durables index is getting lifted by stocks in electricals and jewellery. Havells is the top gainer in the index on a big, single-day jump while Titan is lifting the broader index higher. Titan’s weight in the index is relatively larger than Havells and it has also reported good earnings recently, so investors will be watching if the stock can extend higher towards its 52-week high after rallying sharply in the past few days.

• Havells India (HAVELLS): Rs 1,225.00 up 3.68% from Rs 1,181.50
• Titan Company (TITAN): Rs 4,591.20 up 2.38% from Rs 4,484.40
• PG Electroplast (PGEL): Rs 577.75 up 1.29% from Rs 570.40
• Blue Star (BLUESTARCO): Rs 1,608.00 up 0.64% from Rs 1,597.80

Not all stocks in the index are rallying in sympathy with the sector. Kalyan Jewellers (KALYANKJIL) is down 6.49% at Rs 356.50 from Rs 381.25 while Dixon Technologies (DIXON) has dipped 0.5% to Rs 13,237.00 after rallying sharply on Monday on the news of a joint venture with Vivo. Crompton Greaves Consumer Electricals (CROMPTON) is down 1.51% at Rs 268.20 from Rs 272.30 while Whirlpool of India (WHIRLPOOL) and Bata India (BATAINDIA) are hovering just barely in the red as well. The consumer durables move is being driven by a handful of stocks and not across the board.

Tuesday’s broader market rally is also selective. While the Nifty 50 is up 0.23%, smallcaps are lagging with declines of 0.78%. Even the large-cap focused Nifty Bank index is trailing the broad market, down 0.32% for the day so far. It underscores that investors are rewarding selective stocks and sectors with solid fundamental catalysts rather than indiscriminately buying everything.

Source: nseindia.com