Auto Firms’ Optimism Pushes Nifty Above 12,000, Sensex Keeps Head Above Water

The trades on Thursday were on expected lines, because of the expiry of weekly option contracts. But the good part was that despite the volatility, indices did not move into the red territory, albeit once. When it did, the dip was marginal. This indicates that Bulls were comfortable carrying on with their positions. It was the Bears who became jittery by the end of the day. NSE라이브 바카라 Nifty closed with gain of 50.05 points or 0.42 per cent at 12,016.10 while BSE라이브 바카라 Sensex closed at 40,653.74 an increase of 183.96 points or 0.45 per cent.

What dominated the discussion on Dalal Street was the news that some auto companies had said they would not be cutting production following the festive season surge. The fear on the Street was that the filip seen in October라이브 바카라 auto sales may not continue. The auto companies’ stand means they are not expecting any major decline in sales. That also means that the credit-delivery system in the retail space, somewhat damaged, was on the path of recovery,

In the last couple of days, some more auto ancillary stocks have started showing better performance. Auto ancillaries are sent advance production schedules by auto companies. They will only perform well if there is enough indication that an uptick in order books of auto firms is not temporary. Any rise in auto stocks would start later, but the indication is that things are on the mend.

Another set of stocks which dominated the markets were those of housing finance and home improvement companies. In fact, any company which was related to the real estate did well. The package announced by the government on Wednesday evening was enough to push up the mood in several such companies.

While any sustained rise in home improvement companies might take a while, most of them have a small capital base. That means that any positive expectations in the market tend to be priced in very aggressively by them. Some of the financial stocks, which had been rallying for the last few days, witnessed profit booking and may stay in that phase for some time. The extent of their cuts, though, was not very high.

(Shilpa Nagpal is an analyst at Market Wizards Securities Pvt Ltd)