Chemical stocks see buying after a long time

NEW DELHI:

Heavyweight stocks were muted compared to the sector-wise and mid and smallcap upsides on Tuesday, said Vinod Nair, Head of Research at Geojit Financial Services.

The chemical sector emerged as a clear winner due to improvements in product prices stemming from stability in the demand and supply scenario.

Meanwhile, the metals sector rallied in anticipation of further green shoots from the Chinese government and central banks, aimed at improving the local economy.

The benefits from festival demand were evident in sectors such as consumer durables, manufacturing, power, and real-estate, he said.

Niche sectors like speciality chemicals saw buying interest after a long time on the back of news flows regarding the surge in chemical prices in China, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Most of the sectoral indices were in green while Nifty Metal outperformed with gains of 1.28 per cent. The hopes of stimulus in China are supporting metal prices at lower levels, which fuelled optimism in metal market, said Omkar Kamtekar, Research Analyst, Bonanza Portfolio.

In anticipation of critical inflation and jobs statistics this week that might determine the future of interest rates, gold prices rose on Tuesday as the recent rally in the US dollar and Treasury yields showed symptoms of exhaustion.

That was one of the factors contributing to a flat market at the global level, Khemka said.

UPL, Hindalco Industries, Adani Ports, Hero MotoCorp and Tata Steel were among the top gainers on the Nifty, while the top losers were Bharti Airtel, HUL, Axis Bank, Dr Reddy's and Reliance Industries.


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