Sensex scales Mt 65k; Nifty settles above 19,300; SpiceJet jumps 12%, Abans tanks 14%

Sensex scales Mt 65k; Nifty settles above 19,300; SpiceJet jumps 12%, Abans tanks 14%

At the beginning of the new month, the domestic stock markets witnessed a strong surge, affirming the continuation of the ongoing rally. Supported by positive global cues, benchmark indices concluded Monday’s trading session with significant gains. Within the domestic market, the buying momentum was driven by heavyweight stocks, and speculation regarding a merger involving HDFC Group companies generated interest among investors, resulting in active participation from buyers.

During the trading day, the BSE Sensex, consisting of 30 major stocks, registered a notable gain of 486.49 points, equivalent to 0.75%, closing at 65,205.05. Simultaneously, the NSE’s Nifty50, comprised of 50 large-cap stocks, experienced a surge of 133.50 points or 0.70%, settling at 19,322.55. While the broader market segments, including the BSE midcap and smallcap indices, outperformed the benchmark indices by closing in positive territory, there was an increase in India VIX, a measure of market volatility, rising approximately 7% to the level of 11.54.

According to Shrikant Chouhan, the Head of Research (Retail) at Kotak Securities, the market’s impressive upward momentum has persisted due to positive factors such as robust June GST collections and the arrival of monsoon across various regions in recent days, which have buoyed investor sentiment. The ongoing rally has been primarily driven by substantial foreign fund inflows, and India’s favorable performance across various economic indicators may further enhance the inflow of funds in the near future.

According to the analyst, the Nifty index showed a trading range between 19,250 and 19,335, with a positive short-term technical outlook. However, there is a possibility of profit booking at higher levels due to temporary overbought conditions. Traders should closely monitor the levels around 19,250-19,180 as crucial support, while the range of 19,400-19,435 is expected to pose significant resistance.

In terms of sectors, the Nifty PSU Bank index witnessed a substantial surge of approximately 4%, while the Nifty oil & gas index recorded a gain of over 2%. Similarly, the Nifty metal, financial services, and FMCG indices each added around 1% to their value. On the other hand, the Nifty pharma and healthcare indices experienced a decline of approximately 1% each. The Nifty IT, auto, and consumer durable indices were also among the sectors that underperformed during the trading session.

Within the Nifty50 index, Grasim Industries and ITC witnessed a significant surge, with both stocks gaining more than 3% each. Bharat Petroleum Corporation also recorded similar gains. Bajaj Finance, Reliance Industries, and State Bank of India experienced gains of over 2% each. HDFC, Ultratech Cement, and ONGC were among the other notable gainers during the trading session.

Power Grid, Bajaj Auto, and Sun Pharma were among the decliners, with each of them dropping by 2%. Cipla, Maruti Suzuki, Nestle India, UPL, and Dr. Reddy’s Laboratories also experienced declines of over 1% each. Tata Consultancy Services, Tech Mahindra, and Larsen & Toubro were the other major underperformers among the blue-chip stocks.

Vinod Nair, Head of Research at Geojit Financial Services, stated that investors are feeling more confident due to favorable domestic data and positive global market conditions. The global market has been supported by strong economic data, eliminating concerns of a recession.According to him, the Indian stock market witnessed a widespread trend, driven by strong performances in the energy, financial, metal, and FMCG sectors. He noted that economic activities are picking up pace, as indicated by the PMI level expanding to 57.8. This signifies a sustained demand for products and instills confidence in the manufacturing sector’s future prospects.

On Monday, a total of 3,840 shares were traded on the BSE. Out of these, 1,972 shares closed with gains, while 1,721 stocks ended the session lower. Additionally, 147 shares remained unchanged. During the day, 12 shares reached their upper circuit limit, while only six shares reached the lower circuit levels.

In the broader markets, ADF Foods experienced a significant surge of more than 19%, while Himatsingka Seide saw a rise of over 14%. SpiceJet witnessed a gain of more than 12%, and Lloyd Steels and Ador Welding both gained 11%. Monarch Networth Capital, Suzlon Energy, and RattanIndia Power all surged by 10% each during the day.

On the other hand, Abans Holdings faced a steep decline of over 14%, while Surya Roshni and 63 Moons Technologies both tanked by 8%. Parag Milk, Skipper, Wardwazard Innovations, and Mobility all experienced a drop of 6% each throughout the day.