Large trade in Sundram Fasteners, selling pressure in Wipro: Decoding the dealing room buzz

Shares of Sundram Fasteners fell as much as 4 percent in Wednesday's session after 1.2 percent of its equity exchanged hands in a large trade.

Sources within the dealing rooms tell CNBC TV-18 that a large foreign institutional investor (FII) is likely to be the seller in this transaction. However, the stock recovered from the day's low to end marginally lower.

At the end of the June quarter, foreign institutions held a 11.74 percent stake in the company. The stock has not done much over the last 12 months, declining 3 percent.

Indian equities saw a massive intraday recovery from the opening lows. The Nifty 50 index recovered 330 points from the opening lows to close at 18,003.

The recovery was led by financials and cement stocks, with the Nifty Bank index crossing the 41,000 mark for the first time since October last year. The index ended at 41,405, crossing its previous closing high of 41,238.

Cement stocks have also been buzzing in anticipation of further consolidation within the industry. All eyes are now on Ambuja Cements' board meeting on September 16 to consider a proposed fundraise.

Shares of Wipro snapped a five-day gaining streak in mid-week trading as the entire IT sector bears the brunt of the overnight sell-off on Wall Street and cautious commentary from brokerages.

Dealing room chatter suggests that Wipro is seeing sell flows at a leading FII desk, adding to the pressure on the Nifty 50 constituent.

Incidentally, while Goldman Sachs downgraded most IT majors from TCS to Infosys, Wipro is the only stock that the brokerage upgraded, citing attractive valuations.

Also Read: Why Saurabh Mukherjea remains bullish on TCS among largecap IT stocks

The infrastructure major is another stock that is witnessing selling pressure at the FII desk. The stock snapped a two-day winning streak to end 1.7 percent lower. Shares have recovered 35 percent from their 52-week low in June this year.

A stock where FII buying was witnessed is Granules, according to dealers. The stock ended with cuts of 0.5 percent and is down 8 percent this year. 23.1 percent of the company is owned by FIIs, with some leading funds like Fidelity, Government Pension Fund, and BNP Paribas Arbitrage among the stakeholders.