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After Market: Cigarette, paper counters rally; 35 stocks set to fall

BSE Midcap climbed 0.4 per cent and BSE Smallcap rose 0.3 per cent, outperforming Sensex.

Updated: Sep 18, 2019, 06.34 PM IST
NEW DELHI: Cigarette stocks rallied after the government banned on e-cigarettes on Wednesday. Realty, PSU bank and metal stocks also saw buying during the day.

Nifty Realty was the biggest gainer, rising 1.5 per cent led by over 7 per cent surge in Prestige Estates Projects and 4 per cent spike in The Phoenix Mills. Nifty Metal also spiked over a per cent led by NMDC and Tata Steel.

Overall, the market saw marginal gains ahead of US Fed’s policy rate decision. Traders were cautious to take bets as uncertainties remained on US-China trade war front and Saudi oil crisis despite some positive news. Sensex ended up 83 points to 36,563 and Nifty closed up 23 points at 10,840.

“Market was rangebound with a positive bias backed by stability in oil prices with signs of faster restoration in Saudi production. Further rupee gained and 10-year yield declined that added some respite to the sentiment. Auto pact was rangebound as the sector is unlikely to get any interim relief by way of GST cut due to concern of further shortfall in tax collection and challenges to meet fiscal target," said Vinod Nair, Head of Research, Geojit Financial Services.

US President Donald Trump said the US and China will resolve their differences before the US goes to polls in 2020. On the other hand, Saudi Arabia said it would restore its lost oil production by month-end.

Here is a lowdown on key movers and shakers of Wednesday’s session:

e-Cigarette ban lifts cigarette stocks
Following the announcement of ban on e-cigarettes, stocks of cigarette manufacturers in India spiked. Godfrey Phillips ended the day up 5.5 per cent at Rs 991, ITC was up 1 per cent at Rs 239.60, Golden Tobacco surged 4.7 per cent to Rs 31.25 and VST Industries rose 3.43 per cent to Rs 3,622.

Balmer Lawrie tanks 7%
Share prices of Balmer Lawrie plunged 6.6 percent after the company deferred the bonus issue. The stock ended the day at Rs 168.35, down Rs 11.85.

Paper stocks rally
Paper stocks continued their rally during the day over buzz of single-use plastic ban from October 2. Emami Paper rose 3.3 percent, Genus Paper was up 3.59 per cent, Malu Paper jumped 4.5 per cent and Star Paper climbed over 7 per cent.

Sensex movers
Reliance Industries (RIL) emerged as the biggest Sensex gainer after reports of Mukesh Ambani increasing stake in the company. The stocks contributed 27 points towards Sensex’s 82 point rise. India’s biggest lender SBI came in next, adding 24 points. HDFC Bank was the biggest loser.

35 stocks slide below MACD signal line
35 stocks, including Infosys, NIIT, Bajaj Auto, Dr Lal Pathlabs on NSE slid below the signal line on MACD indicator, generating bearish trend indicating it is time to sell.

India VIX eases
India VIX, the volatility index, plunged over 5 per cent coming close to the 15 level. Lower VIX level means more stability for indices.

Broader market outperforms
Midcap and smallcap indices outperformed benchmark indices. BSE Midcap climbed 0.4 per cent and BSE Smallcap rose 0.3 per cent, outperforming Sensex.
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