Market Movers: Bears mauled in bank stocks; DLF rings in realty’s glory days
The country’s largest real estate developer soared over 9 per cent as the maniacal buying in real estate stocks continued in the hope of a multi-year ‘supercycle’ for the sector. The Nifty Realty index surged nearly 9 per cent to add to the over 13 per cent gains on Wednesday.
At this pace, the possibility of a real estate company entering the Nifty50 index may not be thin. After all, this bull market has time and again made the skeptics look like fools.
RIL is back
After the lull that followed the delay in launching the much-awaited JioPhone Next, shares of Reliance Industries were back today as they ended over 2 per cent higher.
The gains were led by the news that the company’s telecom arm added more than 6 million customers in July reflecting an acceleration in user acquisition. The pace of customer acquisition was more than three times that of Bharti Airtel.
Spirits are up
United Spirits, the country’s largest listed alcoholic beverage maker, had hardly participated in the bull market so far. However, this week the stock has been on fire, likely because of optimism for volume recovery as bars and restaurants open up across major metro markets due to the waning of the second wave of the pandemic.
The stock has seen a multi-year breakout in its daily chart suggesting that the gains could continue for some time to come. Of course, that’s good news because what’s a party without some aerated drinks that taste sour.
Shorts get butchered
Traders who shorted banking stocks in the hope that Evergrande crisis will blow up and cause foreign investors to pull money out got butchered today. Banking stocks, a favourite of foreign investors, are usually the sacrificial goats for bears during times of global tumult.
As China steps in to manage Evergrande crisis, concerns over a global contagion have gone down dramatically. This caused bears to hurriedly cover their short positions in the September contract of the Nifty Bank index. The index, as a result, closed over 2 per cent higher.
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