Broader gains even as Adani listing disappoints

The listing of Adani power was the big event for the markets today. The markets opened with a gap-up of 120 points and stayed above the level for most of the day except for a brief 2 point dip near the end of day’s trade.

The Adani IPO was listed at a 5% premium but closed at 101.27, or a rupee above its issue price.

The Nifty rose 1.35% to close with a gain of 59.35 points at 4453.45. The markets had a gap up opening and ended the day with 44 advances among the Nifty pack. Maruti led the advance with a 5.27% gain to close at Rs.1370.50. Mahindra and Mahindra was up 4.55% to close at Rs.773.85. IDEA and Hero Honda gained 4% each. SBI was also up, gaining 3.67%.

The rise in oil of upto $3.00 over the recent past means that oil and gas sector could be in play over the next few days suggested experts. The refiners are likely to benefit from the higher prices though oil marketing companies could be adversely affected, they said.

Bharti Airtel was the biggest loser of the day, dropping 1.33%. It ended the day at Rs400.05. GAIL, BPCL, Tata Motors and CIPLA also ended with marginal losses.

The Sensex showed a gain of 202.68 points, it closed at Rs.15,012.32. Among the sectoral indices Auto was the top gainer, going up 2.60%. Bankex also gained 1.85%.

There is a shift in the market towards small and midcap companies due to the fact that valuations are on the higher side in the large-cap stocks. This has been reflected in some of the power utility companies which moved up even as large-cap stocks remained unmoved. “The small and the midcap sector is likely to be in focus now. Thinner volumes mean that the stocks are likely to see a large move with any shift in buying interest,” said K N Rahaman, deputy research head at Way2Wealth.