Market Movers: Risk takers make a comeback; Bajaj Finserv roars over MF license

MUMBAI: Whisper it, but it seems Indian investors’ risk appetite may have finally come back. True, drawing conclusions out of one session is foolhardy but the nature of today’s move suggests that the grinding drawdown seen in the broad market over the past couple of weeks may be nearing its end.

Today, the Nifty Midcap 100 and Nifty Smallcap 100 surged nearly 2 per cent each and outperformed the benchmark Nifty50 by a mile. The breadth of the market was stellar as more than three stocks rose on the National Stock Exchange for every one that fell.

Observers of the market will note the distribution of the gains across sectors barring information technology and FMCG as another sign of some revival in the market’s risk appetite. Both the Nifty IT and Nifty FMCG index ended in the red, while sectoral indices from banks to real estate surged.

With smallcap stocks tumbling 22 per cent on average in just two weeks of sell-off, investors will hope that the worst of the shake-out in the broader market is behind them.

For , MF sahi hai!

Shares of Bajaj Finserv roared to their lifetime highs in the session after the company said it has received Sebi’s in-principle blessing to open a mutual fund and join the ‘MF sahi hai’ bandwagon.

While the timing of Bajaj Finserv’s entry into the mutual fund industry is intriguing given the sort of disdain the industry has received from investors over the past few years because of underperformance by most equity schemes, investors seemed in jovial mood.

The stock jumped nearly 8 per cent in the session to cross the Rs 16,000 mark for the first time. Although it is a different matter that much of the gains were driven by speculators and short covering as delivery volumes today were merely 13 per cent.

An affordable agro bet?

JM Financial believes that India Pesticides is one of the most affordable plays available in the market on India’s pesticide export story. The brokerage has, therefore, initiated coverage on the stock with a “buy” call and a price target that implies 26 per cent upside in next 12 months.

Investors concurred with JM Financial’s bullishness as the stock of the company jumped 4 per cent in the session backed by strong delivery volumes.

JM Financial is betting the company’s new products and capacity expansion will help India Pesticides grow its revenue 16 per cent annually over the next three years.

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