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After Market: Yes Bank, SBI on a high, midcaps outperform; 80 stocks hit 52-week highs

Gains in IT stocks such as Infosys and TCS led the benchmark indices higher.

Last Updated: Oct 31, 2019, 05.29 PM IST
Yes Bank share saw a big rally, jumping as much as 35 per cent, before settling with gains of 24 per cent after the private lender received an interest from a global investor to buy a stake. PSU bank stocks also logged solid gains, with SBI rising nearly 8 per cent and Central bank of India 12 per cent.

Gains in IT stocks such as Infosys and TCS led the benchmark indices higher, but losses in private banks kept the gains capped. Overall market movement was volatile, as traders squared up positions as the October series F&O contracts expired.

BSE flagship Sensex ended 77 points higher while its NSE counterpart Nifty added 37 points to reach 11,881. Sensex hit a life-high of 40,392 in intraday trade.

“Nifty expired October series at 11,881 with nearly 3 per cent gain on an expiry basis. After a strong but volatile move, the index closed the session on a positive note forming a Doji candle on the daily chart, which hinted at indecision in the market. Now, the index has support in the 11,840-11,780 zone and resistance at 11,950-12,000. Current chart pattern looks promising for the bulls, which signalled that every dip can be bought into keeping stop loss below 11,700, said Rohit Singre, Senior Technical Analyst at LKP Securities.

Yes Bank gets a booster shot
Yes Bank shares surged 24 per cent to Rs 70.45 after the lender said it had received a binding offer from a global investor for a $1.2 billion investment in the bank. The bank is yet to consider the offer. The bank continued to be in advanced talks with other global and domestic investors. "YES Bank is badly in need of capital for growth. Absence of positive news on this front led to bear hammering of the stock, which had taken it below Rs 30," said VK Vijaykumar, Chief Investment Strategist from Geojit Financial Services.

IOC faces Q2 heat
IndianOil ended 2.14 per cent down after it reported 82.65 per cent year-on-year drop in September quarter profit at Rs 563.42 crore. “The variation in bottomline was on account of inventory loss during the current quarter and inventory gain during the corresponding quarter last year,” Sanjiv Singh, Chairman, Indian Oil Corporation, said in a media interaction.

HCC jumps on Lavasa bids
Shares of Hindustan Construction Company rallied nearly 20 per cent after a media report said lenders to Lavasa Corporation are set to decide on Thursday on the three offers made for the realty company by food major Haldiram Snacks, Pune-based builder Aniruddha Deshpande and UV Asset Reconstruction Company.

PSU Bank index biggest gainer
PSU Bank index was the biggest sectoral gainer on NSE gaining 3.79 per cent to 2,504. The gain was due to advances in Central Bank of India that jumped 11.75 per cent to Rs 23.30 and SBI that climbed 7.8 per cent to Rs 312.50. All but one index constituent ended the day with gains.

IT, banks top Sensex contributor
IT and select banking and financial stocks were top contributors to Sensex. Infosys, SBI, HDFC, YES Bank and TCS together contributed 261 points. On the other hand, private banks like HDFC Bank, Axis Bank and ICICI Bank along with Reliance Industries proved to be drags on the 30-share pack. They together cut 205 points.

Midcaps outperform
The BSE Midcap index outperformed its largecap peer by a wide margin. Nifty Midcap index jumped 1.44 per cent to 16,821 led by gains in Quess Corp (up 9 per cent), HUDCO (up 9 per cent) and RBL Bank (up 7.30 per cent).

Over 80 stocks hit 52-week highs
As many as 81 stocks hit 12-month on BSE including Bata India, Bajaj Auto, Berger Paints, HUL, Muthoot Finance, HDFC Life and NIIT Tech, among others.

38 stocks turn ‘overbought’
As many as 38 stocks crossed the 70 mark on the upside on Relative Strength Index (RSI) indicating ‘overbought’ condition. They included Tata Global Bev, HUDCO, Delta Corp, MSTC and CDSL, among others. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
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