Nifty: Market Watch: Is it time to take profits on mid-cap stocks?

Welcome to ETMarkets Watch, the show about stocks, market trends and ideas for making money. I am xxxx. and here are the headlines at this time.

ITC to invest $2 billion for capacity expansion
BPCL Q1 net profit drops 28% YoY to Rs 1,502 cr
India has exported 5.11m tonnes of sugar so far this year (AISTA)
Passenger vehicle sales up 45% in July 2021
Tatas will realign its private equity business
Augment Infra invests Rs 1,650 cr in Cleanmax

Let’s take a quick look at what happened in Dalal Street today.

The bulls were back on Dalal Street, pushing national benchmarks to new highs. IT and financial meters were on investors’ radar as the unexpected drop in consumer price inflation in the United States unnerved them. However, Fed officials continued their hawkish comments. BSE Sensex hit a new high of 54,874 before settling around 320 points higher just below the 54,850 mark. Nifty50, which gained over 80 points during the day, ended the day just 10 points below its new high of 16,375. Broader markets outperformed, with the BSE midcap index gaining more than 1%, while the smallcap index jumped 2%. The India VIX Fear Gauge is down 3%.

On BSE Sensex, Power Grid climbed 6% and Tech Mahindra rose 5%. HCL Tech and Titan jumped 3% each, while L&T and NTPC gained 2% each. ICICI Bank, Bajaj Auto, Infosys and Tata Steel each added up to one percent. On the other hand, Dr Reddy’s Labs and IndusInd Bank lost more than half a percent each. Axis Bank, M&M, Reliance, SBI and Maruti were other constituents finishing in the red. More than 425 stocks hit the upper limits of the circuit for the day, while around 70 stocks tested their 52-week highs during the day.

We have Vinod Nair from Geojit Financial Services with us to share his take on the day’s action and the road ahead:

Welcome to the show, sir:

1. What was behind the optimism of investors on Thursday?
2. Many analysts suggest investors book profits in mid caps and focus on large caps. Why is there so much caution all of a sudden?

We also caught up with Ashis Biswas from CapitalVia Global Research to decode the technical charts for you.

1. Nifty hit a new high on the weekly expiry day. Where is he going ?
2. Nifty Bank was lagging today. What do the spec sheets suggest about this?

Asian markets ended mostly lower for the day. Major European markets were trading higher in the early hours of trading. US stock futures were flat, pointing to a muted start in US equities later in the day.

That’s all for the moment. Check out for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye!