Market movers: Likely Nifty inclusion lifts Info Edge; CLSA upgrades fuels rally in RIL

Perhaps for the first time in history, a company holding a clutch of internet technology companies has come this close to enter the coveted index. And, investors are in celebratory mode.

Shares of Info Edge rallied over 11 per cent, recovering some of the losses sustained in sell-off in the last one month. The stock still trades 35 per cent lower than 52-week high price.

But, analysts at ICICI Securities pointed out that inclusion of such expensive stocks is likely to send index valuation higher.

Few takers for AGS Transact
For any stock, the debut day upside is important as it sets the tone for upcoming sessions. But, lately weakness in the market has resulted in some of the stocks having forgettable debuts.

The trend was intact on Monday when AGS Transact plunged over 8 per cent as even IPO investors were forced to sell stocks at a loss given the lack of demand. It ended the day at Rs 160.50 against the issue size of Rs 175.

CLSA thrust to RIL
Thanks to the heavy weight of Reliance Industries in headline indices, whenever it moves, the impact is felt across the market. Monday was one of those days as the stock moved up by 2 per cent.

The reason was an upgrade from foreign brokerage CLSA, which rates the stock as ‘buy’ now from earlier outperform. The broker said after a sharp fall, Reliance is now within 15 per cent of its conservative value, which uses 18-month old deals to value Jio and Retail and assigns no value to its new energy segment.

“We believe Reliance is at a good entry point to play its long-term promise across multiple big India themes as well as top-quintile near-term earnings growth among Nifty names. We raise our target from Rs 2,850 to Rs 2,955,” said the broker.