Mapping the market: IT’s Big Five saw mass desertion, all else had a dull show

NEW DELHI: After the storm on Friday came the eerie silence of Monday.

The market and market men did little all day except juggling from losses to gains to finally end the day with nothing at all. The S&P BSE Sensex closed 5 points higher matching the six-point gain in NSE’s 50-share index Nifty50.

The BSE benchmark moved in a 230-point range through the day as it tried to get its head around the mayhem created by Britain’s shocking decision to leave the European Union.

That said, let’s take a look at the interesting stories that emerged from one of market’s dullest days in trade.

1) IT’s Big Five took a beating: Stocks of information technology firms faced re-ratings after Britain in a shock move voted to move out of the European Union. Investment banking firm Bank of America-Merrill Lynch cut its target price for Infosys by 2.37 per cent, Tech Mahindra by 0.49 per cent, HCL Technologies 0.96 per cent and Wipro by 1.23 per cent.



2) Bajaj Finserv’s exciting day: Shares of Bajaj Finserv had a lot to cheer about as the stock closed 4.27 per cent higher. The buzz around Dalal Street was that the company was in talks with its German partner Allianz SE to buy out its stake in Bajaj Allianz General Insurance and Bajaj Allianz Home Insurance.



3) Healthcare sector looks healthy: Healthcare stocks saw a handsome rally on Dalal Street, amid reports of possible action from USFDA on big pharma companies such as Lupin, Dr Reddy’s and Wockhardt. The stocks rallied on the back of the continued weakening of the domestic currency, which is seen aiding earnings of these companies. The BSE Healthcare index closed with massive gains of 2.63 per cent with individual stocks gaining as much as 14 per cent led by the twin Biocon and SPARC.



4) A dull market still gives a high: Even though Dalal Street had a rather dull day, some stocks still managed to get a high. About 53 stocks managed to hit their 52-week highs during the session led by Birla Corporation, MphasiS and Muthoot Capital. Other prominent names that hit fresh highs included Biocon, KPR Mills and Bajaj Finserv.



5) Stocks which saw heavy volumes: The Unitech counter witnessed brisk action through the day with 62,156 shares changing hands by that of SBI, IFCI, Shree Renuka Sugars and Jaypee Associates. On NSE, too, Unitech came out winner in terms of volume followed by JP Associates, Urja Global and Suzlon Energy.



6) Put-call ratio slumps: The Nifty50 PCR or put-call ratio slumped from 1.217 to 1.177 during the session as traders piled on Call options. The PCR hit an intraday low of 1.117 before recovering in the last hour of trade. A PCR above one indicates a brodaer bullish undertone. Traders suggest the overall option data indicates a volatile swing between 8,040 to 8,180 marks over the next few sessions.