Closing Bell: Sensex up over 300 pts, midcaps underperform; IT zooms, ONGC dips

Benchmark indices rose, driven by IT stocks, such as, Infosys and TCS on the back of a weak rupee. The IT index has gained 18 percent so far this year. The rupee has weakened by more than 7 percent so far this year, as surging crude oil prices weigh on India, the world’s third-largest importer, raising fears that soaring costs could drive up inflation and widen the trade deficit.

Meanwhile, ONGC ended the day 4 percent lower after falling 10 percent in intraday trade after the media reports suggested that the government may ask the company to share the burden to reduce fuel price.

We continue to be positive on the overall market and recommend buying stocks in the private banks, consumption space where earnings momentum are strong. Some of the stocks which we like are Godrej Agrovet, Bajaj Finance, Kotak Bank and Relaxo Footwear.

Reference By- https://www.moneycontrol.com/news/business/markets/closing-bell-sensex-up-over-300-pts-midcaps-underperform-it-zooms-ongc-dips-2574767.html