Indian equity benchmarks broke their four-day losing streak on Monday led by gains in index heavyweights Reliance Industries, Infosys, ICICI Bank, Tata Consultancy Services, Bajaj Finance and State Bank of India. The Sensex touched 783 points and the Nifty 50 index touched an intraday high of 17,750.90. Analysts said strong earnings expectations for the September quarter, which will begin with IT giant TCS, and continuation of the Reserve Bank of India’s monetary policy strengthened investor sentiment.
Sensex closed 534 points higher at 59,299 and Nifty 50 index rose 159 points to 17,691.
Ashish Biswas, Head of Technical Research said, “If Nifty is able to sustain the levels of 17,550-17,600 then it may see higher levels of 18,000. Technical Indicators may see market volatility in a short range between 17,600-18,000. indicate a downtrend.” In CapitalVia Global Research.
Buying was visible across the board as all 15 sector gauges compiled by the National Stock Exchange ended higher with the Nifty Metal index gaining 3 per cent. Nifty Realty, PSU Bank, Pharma, Media, Bank, Financial Services, IT and Private Bank indices also rose between 0.9-2.6 per cent.
Mid- and small-cap stocks outperformed their larger peers as the Nifty Midcap 100 index rose 1.6 per cent and the Nifty Smallcap 100 index rose 1.54 per cent.
Divi’s Labs was the top Nifty topper, with the stock closing at a record high of Rs 5,211, up 7.84 per cent, Merck & Co partner Ridgeback Biotherapeutics said on Friday. At risk of contracting severe COVID-19. Divi’s Laboratories manufactures the main ingredient of Merck & Co.’s drug. Divi’s Labs informed exchanges on 26 May that it is an authorized manufacturer for Molnupiravir APIs for Merck’s partners in India.
NTPC rose 4 per cent to settle at Rs 145.50 after the company declined plans to raise Rs 15,000 crore from the IPOs of its three subsidiaries.
Hindalco, Bajaj Finserv, Tata Motors, State Bank of India, Bajaj Finance, Tech Mahindra, Tata Consumer Products, SBI Life and Tata Steel were also gainers.
On the flipside, Cipla, Grasim Industries, UPL, Indian Oil, Eicher Motors, Bajaj Auto, Britannia Industries, Hindustan Unilever, HDFC Life and Titan were among the losers.
Overall market breadth was positive as 2,331 shares closed higher while 1,016 closed lower on the BSE.