Market Movers: SBI Cards, Wipro shares shine; 39 stocks give buy signal

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MUMBAI: Benchmark equity indices gave up most of their gains towards the fag-end of the session today as investors did not carry forward long positions over the weekend, given the current uncertainties created by Covid-19.

The ongoing second wave of infections in the country have created uncertainties around more localized restrictions, which may cloud investors’ ability to forecast economic and earnings growth in the near term, said analysts.

For the day, the Nifty50 index ended 0.3 per cent or 36.4 points higher at 14,617.85, while the BSE Sensex closed at 48,832.03, up 0.1 per cent or 28.35 points.

In the broader market, the gains were more pronounced as the Nifty Midcap 100 and Nifty Smallcap 100 index closed 1.0 per cent and 1.1 per cent higher, respectively.

Here are the major movers in today’s trade:

SBI Cards rises on Citibank news
Shares of India’s second largest credit card company rose nearly 7 per cent on the perception that the company could explore the acquisition of Citibank’s thriving credit card business in India. Citibank on Thursday said it will exit the consumer lending operations in the country. With HDFC Bank currently not allowed to acquire new credit card users, analysts believe it could pave the way for SBI Cards to either acquire Citi’s operations or win market share if Citi’s credit card users jump ship.

soars on new aggression

Shares of Wipro ended 9 per cent higher as investors were impressed by the aggression displayed by the new management in terms of growth outlook and deal wins. The company guided for 2-4 per cent constant currency growth in June quarter sales, which was above Street’s estimate.

Metal stocks gain on dollar’s weakness

Shares of base metal producers rose, tracking similar gains in global metal prices. Global metal prices climbed on the back of weakness in the US dollar and indication that the global reserve currency could fall further going ahead. The Nifty Metal index ended 0.8 per cent higher.

What gave the buy signals?

As many as 39 stocks listed on the National Stock Exchange gave a buy signal based on MACD indicators, including NALCO, ONGC,

and Indus Towers.

What’s ahead for the market?

Traders continued to sell out-of-money Call and Put options of the Nifty50 index, suggesting that they expect the index to move in a narrow range next week. In the futures segment, the traders added long positions in the April contract of the index as open interest rose 9.2 per cent on a provisional basis.

“Surprisingly, markets are showing tremendous resilience despite the rising Covid cases, but sustainability at higher levels seems difficult if this trend continues,” said Ajit Mishra, vice president of research at Religare Broking.