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The 30-share pack BSE Sensex rose 363.20 points, or 0.49 percent, to close at 74,014.55. The NSE’s Nifty50 index rose 135.10 points, or 0.61 percent, to conclude at 22,462.
Nifty above 21,450 mark; PSU banks in demand
Domestic equity markets began the new fiscal year 2024-25 on a positive note, with leading indices reaching new record highs on Monday. Positive domestic and global cues reinforced Dalal Street sentiments. Positive economic statistics and anticipation for rate cuts bolstered market sentiment, while confidence about Q4 earnings fueled purchasing.
For the day, the 30-share pack BSE Sensex rose 363.20 points, or 0.49 percent, to 74,014.55. The NSE’s Nifty50 index rose 135.10 points, or 0.61 percent, to conclude at 22,462. Broader markets outpaced headline rivals, with the BSE midcap index rising 1.65% and the BSE smallcap index rising more than 3%. Fear gauge India VIX fell approximately 6% to 12.08 levels.
The market began the week with moderate gains and reached fresh life highs. On a sectoral basis, real estate and metals did well, while FMCG and Auto traded poorly. According to Ajit Mishra, SVP – Technical Research at Religare Broking, the broader indices beat the benchmark, with smallcaps up more than 3% and midcaps up 1.5%.
“We are now targeting 22,700 in the Nifty, therefore traders should retain a ‘buy on dips’ strategy. We believe that the banking pack’s participation will continue to be crucial in preserving the current momentum, while others may provide assistance. Traders should stick to a stock-specific strategy and focus on the stocks,” he stated.
On the sectoral front, the Nifty media index jumped 4.7%, while the Nifty realty index rose 4.35 percent for the day. The Nifty metal index surged 3.7%, while the Nifty PSU bank index rose more than 1.5% for the day. Only the Nifty auto and FMCG indices performed poorly.
JSW Steel increased by more than 4.85% on the Nifty50 index, while Tata Steel increased by nearly 4.5 percent. Divis Labs gained more than 4%, while Shriram Finance and Adani Ports both increased by about 3%. Eicher Motors topped the losers with a 1.65% drop, followed by Titan and Nestle with 1.5% and 1.25 percent declines, respectively.
The Indian market began the new fiscal year on a solid note, with indicators that this positive momentum will continue in the short term, according to Vinod Nair, Head of Research at Geojit Financial Services.
“This confidence is bolstered by a global rally in anticipation of a Fed rate cut in June and a strong domestic earnings growth anticipated for Q4FY24. Metal stocks rose today, thanks to the rapid speed of Chinese PMI data, which suggests traction in the economic recovery. He stated that the market’s direction will be determined by RBI monetary policy, India PMI data, and US non-farm payroll data.
On Monday, a total of 4,058 shares were traded on the BSE, with 3,236 closing with gains. 665 equities closed the session with losses, while 157 stayed unchanged. During the day, 738 shares hit the upper circuit, while 179 shares tested the lower circuit levels.
In the larger markets, Best Agro, Suraj Estate Developers, and EKI Green Energy all exceeded 20%.
PNB Housing Finance rose more than 19%, while Delta Corp rose approximately 13%.
Welspun Living and KRBL both ended up 12%.
Among the laggards, CG Power and Industrial Solutions fell 5%, while Shaily Engineering dropped 3%.
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