Overnight Digest: Stocks to be watched on January 6

After a cautious start in Wednesday's trading session, Indian equity benchmarks traded at day highs, with the Sensex and Nifty zooming 0.61 per cent and 0.59 per cent.

Being more hopeful, traders are keeping an eye on RBI's decision to keep the reverse repo rate unchanged in the next policy due to a surge in corona cases in India. 

Except IT, pharma and power all other sectoral indices ended in the green with the auto, bank, metal, realty and oil & gas indices up 1-2 per cent. The BSE midcap index added 0.36 per cent, while smallcap index ended on a flat note.

Keep a watch on these stocks for Thursday's trading session -

HFCL - The stock has sparkled the eyes of investors and traders by gaining up to 13 per cent on an intraday basis on Wednesday. The surge was on account of business up-gradation. It is powering its network offerings with artificial intelligence-based analytics and has partnered with ApreComm, which is the leading AI-powered Wi-Fi technology provider. The news has indeed cheered the shareholders and people planning to invest in the AI technology space. 

AU Small Finance Bank - The stock of AU Small Finance Bank has jumped 6.88 per cent in Wednesday's trading session. In the last 5 days, the stock has gained over 15 per cent. In the last three trading sessions, the stock has gained traction and has also given a MACD crossover along with positive RSI. Keep a watch on this stock for Thursday's trading session.

Banking stocks - On the sectoral front, BSE Bankex has been catching attention on Wednesday by rising 2.43 per cent beating the benchmark indices and other sectoral indices. AU Small Finance Bank, Kotak Mahindra Bank, Bandhan Bank, Axis Bank and HDFC Bank were the top gaining stocks lifting the index.

Upper Circuit Stocks - The stocks of Shree Renuka Sugars and Bajaj Hindusthan Sugars froze in the upper circuit on Wednesday and are likely to be in focus on Thursday.