Domestic equity markets kicked off the truncated week with some positivity and settled higher on Monday after a choppy trading session. However, the supply constraints of crude oil prices kept the gains in check but positive global cues lifted the markets higher.
For the day, BSE’s barometer Sensex added about 115 points, or 0.19 per cent, to settle at 59,106.44, while the 50-share pack Nifty50 advanced 38.30 points, or 0.22 per cent, to 17,398.05. Broader markets outperformed the headline peers BSE midcap and smallcap indices rally up to a per cent. Fear gauge India VIX declined almost 3 per cent to 12.59-level.
Nifty witnessed a day of consolidation and closed with marginal gains. On the daily charts, we can observe that the Nifty for the whole day consolidated in the zone of 17,310-17,430 where crucial Fibonacci retracement level and the 40-day moving average is placed, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
“After a sharp up move in the last couple of trading sessions, consolidation is a healthy sign and also provides an opportunity to enter for those who have missed out. The hourly momentum indicator has triggered a negative crossover which is a sell signal. Considering that prices are trading around a hurdle level and the momentum indicator triggering a negative crossover can lead to consolidation,” he said.
On a sectoral front, Nifty Auto and PSU Bank indices surged more than a per cent, each, followed by Nifty Financial Services, Media, Realty, and Consumer Durable indices. On the downside, only Nifty Oil & Gas, Metal, IT and FCMG indices settled in the red.
On the Nifty 50, Hero MotoCorp led the gainers with a 3 per cent rally, followed by Coal India, Bajaj Auto and Maruti Suzuki. Divis Labs, ONGC, Eicher Motors and Bajaj Finance rose 2 per cent each. UPL, Bharti Airtel and NTPC too were among the top gainers.
Among the losers, Bharti Petroleum Corporation tanked over 4 per cent. Adani Enterprises and Apollo Hospitals plunged 2 per cent, each. Infosys, ITC, Cipla, Hindustan Unilever, JSW Steel and Hindcalso were among the top losers too.
Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike. However, the surprise production cut by OPEC+ has fuelled concerns about inflationary pressure, which may prompt central banks to remain hawkish, said Vinod Nair, Head of Research at Geojit Financial Services.
“The downside pressure in the market was mitigated as auto stocks rallied in response to the latest sales data, indicating a surge in demand. Additionally, India’s manufacturing PMI exceeded expectations, demonstrating its swiftest growth rate in three months due to increased output and new orders,” he said.
A total of 3,761 shares were traded on BSE on Monday, of which 2,773 settled with gains. 856 stocks ended the session lower, while 132 shares remained unchanged. A total of 15 shares hit their upper circuit, whereas 4 tested the lower circuit levels for the day.
In the broader markets, SML Isuzu hit an upper circuit of 20 per cent as the company reported strong sales numbers in FY23. TTK Healthcare, Andhra Petrochemicals and Blackrose also hit their buyer’s circuits of 20 per cent each. 3I Infotech and Atul Auto rose up to 19 per cent, each.
Among the losers, KPIT Technologies plunged over 12 per cent after JP Morgan initiated coverage on the stock with an ‘underweight’ rating and a target price of Rs 540 per share. Capri Global Capital settled 7 per cent lower, while Mahanagar Gas tumbled over 6 per cent as domestic gas prices remained unchanged after the cabinet decision was pending.
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