Domestic equity markets extended their gains for the second straight session and settled higher on Monday. Benchmark indices cheered the positive cues from domestic and global markets. However, headline peers saw some profit bookings in the second half of the trading session.
For the day, the 30-share pack BSE Sensex jumped 415.49 points, or 0.69 per cent, to 60,224.46. NSE’s Nifty50 surged 117.10 points, or 0.67 per cent, to 17,711.45. Broader markets outperformed the headline peers as BSE midcap and smallcap indices gained over a per cent, each. Fear gauge India VIX advanced about a per cent to 12.27-level.
The relief rally continued for the second straight session backed by a sharp upsurge in energy stocks like power, oil & gas that helped benchmark Sensex end above the psychological mark of 60,000. There is some amount of bargain buying seen after the recent sell off, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
“The overall sentiment still remains that of caution with a negative bias as larger worries related to macro-economic woes and geo-political tension still pose a significant threat to markets. Technically, 17,800-17,900 could be the immediate profit booking zone for the bulls while 17,650-17,600 would be the sacrosanct support zone for the traders” he said.
On a sectoral front, only Nifty Realty and Nifty PSU Bank index settled in the red. Among the gainers, the Nifty IT Index rose more than a per cent, followed by the Nifty Auto index. Financial Services and FCMG indices also posted decent gains.
Among the Adani Group stocks, Adani Enterprises jumped about 6 per cent, whereas Adani Wilmar, Adani Total Gas Ltd, Adani Green Energy Ltd, Adani Transmission Ltd, Adani Power Ltd and NDTV hit an upper circuit of 5 per cent each. Adani Ports also ended the day with mild gains. However, Ambuja Cements and ACC shed up to 2 per cent.
In the Nifty50 pack, Tata Motors Ltd and ONGC jumped 3 per cent each, whereas NTPC, Power Grid, Bajaj Finserv and Infosys Ltd advanced more than 2 per cent, each. Britannia Industries plunged about 2 per cent, most among the laggards. Tata Steel and JSW Steel shed over a per cent, each.
A total of 3,772 shares were traded on BSE on Monday, of which 2,098 settled lowers. 1,473 stocks ended the session with gains, while 201 shares remained unchanged. A total of 269 shares hit their upper circuit, whereas 182 tested the lower circuit levels for the day.
The major concerns that prevailed in the market during the previous weeks were the fear of aggressive Fed policy action, which led to a rise in treasury yields & US dollar, and the uncertainties surrounding Adani, said Vinod Nair, Head of Research at Geojit Financial Services.
“All of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate. Additionally, improved market sentiment due to the foreign bulk deal at Adani, the oversold stage of the domestic market, and FII buying helped sharpen the recovery,” he said.
In the broader markets, Aptus Value Housing surged more than 19 per cent, whereas Mangalore Chemicals & Fertilizers jumped up to 15 per cent, each. JSW Energy, Swan Energy and Paras Defence & Space Technologies surged 11 per cent, each. On the contrary, Hinduja Global Services plunged more than 10 per cent, whereas Marcotech Developers shed 5 per cent.
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