Traders on Dalal Street welcomed the New Year on a very positive note. The traditional muhurat trading on the day of Diwali may have lost some of its significance as many traders view it as just another day of trading. However, brokers on the BSE started the New Year with traditional ceremonies and pujas.
Muhurat trading is traditionally an occasion for an auspicious beginning to the traditional Hindu new year. Investors place token orders and buy stocks for their children, which are held for the long term and sometimes never sold. Traders normally book their intra-day profits, however small they may be.
The indices opened on a strong note, helped by strong global markets. Markets across Asia were very strong and as one commentator put it, may have joined in our Diwali celebrations. The Sensex crossed the 8000 mark within minutes of opening.
Volumes were relatively high for a session which lasted just one hour and 20 minutes. Good buying was seen in some of the frontline stocks. The frontline indices held on to their gains for most of the session, but gave up part of their gains in closing trades.
Sensex closed at 7944, a gain of 52 points, and the Nifty at 2387, higher by 16 points. Nifty November futures closed at a discount of 26 points to the spot index.
HDFC Bank, HPCL and Zee Tele were the major gainers among Nifty stocks while SCI, ABB and BHEL were the major losers.
Mid-caps started slowly before picking up momentum and the index surged more than a per cent. Unlike the frontline indices, the mid-caps managed to hold on to their gains. The CNX Mid-Cap index gained 39 points and closed the day at 3518.
Good buying interest was seen across sectors and many of the popular stocks gained ground. Titan Industries, which had gained more than 25 per cent on Monday, maintained it's up trend and added another 4 per cent.
Easun Reyroll, Subhash Projects and Orient Paper were among the significant mid-cap gainers on the NSE.
Amtek India, Finolex Cables and Asahi India and were among the significant mid-cap losers on the NSE.
*Disclaimer:The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.