Sensex up 28 points at closing, Nifty above 14,600

Our Bureau. Mumbai | Updated on April 16, 2021

Market remains volatile on Covid-19 concerns

After a volatile previous session, benchmark indices closed in the green on Friday. After a opening firm due to positive global cues, markets turned volatile as Covid-19 concerns continue to haunt investors.

The BSE Sensex managed to close at 48,832.03, up 28.35 or 0.06 per cent. It hit an intraday high of 49,089.55 and an intraday low of 48,694.49. The Nifty 50 also managed to above the 14,600-mark at 14,617.85, up 36.40 or 0.25 per cent. It hit an intraday high of 14,697.70 and a low of 14,559.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Strong positive cues from the global market lent optimism to the Indian market leading to robust recovery though volatility and underperformance were noticed at the end of the day due to concerns over lockdown. The US treasury yield saw a sharp drop yesterday on reports of better-than-expected retail sales and a fall in unemployment. It triggered a rally in the US which was also reflected in European and Asian markets. As soon as India is able to show a drop in the infection rate, market performance will improve."

Wipro, Hindalco, Cipla, Asian Paints and UltaTech Cement were among the top gainers on the Nifty 50 while JSW Steel, ICICI Bank, Bajaj Finance, Larsen & Toubro and Tata Steel were among the losers.

However, the breadth of the market turned positive. As many as 1,663 stocks advanced on the BSE, 1,239 declined and 158 remained unchanged. The number of scrips that hit a 52-week high was 156 as against 43 that hit 52-week lows; 254 securities hit the upper circuit as compared to 205 that hit the lower circuit. 

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities remained resilient and defied rising Covid-19 cases in the country. Benchmark Nifty recorded moderate gains mainly supported by favourable global cues and strong buying in Pharma, IT and Auto space.”

“A continued surge in second wave of Covid-19 cases in the country, which already crossed 2 lakh daily cases, has certainly posed a risk to sustainability of rebound of earnings momentum. However, government' s strong effort to expedite vaccination progress in the country by allowing multinational vaccines in domestic markets and absence of complete lockdown in Maharashtra and Delhi offered some comfort to equities. However, risk of other states taking steps of wider economic restrictions continues to persist, which may continue to weigh on investors’ sentiments in the near term,” added Modi.

Wipro top gainer

The shares of IT major Wipro which was the top gainer on the NSE, continued to gain through the day, recording fresh highs after the company reported strong results for the March-ended quarter.

It was up 9 per cent at closing on the NSE. It hit a fresh 52-week high of ₹473.65.

The IT services firm reported strong growth in revenues, backed by a healthy order book and better execution, all resulting in robust margins in the March-ended quarter. The company reported a consolidated net profit of ₹2,972 crore for the March 2021 quarter.

“Strong 4QFY21 show by Wipro along with robust double-digit growth guidance led Wipro to gain over around 8 per cent today. Further, expectations of strong 4QFY21 earnings and possibility of further price hikes aided cement stocks to see sharp recovery,” said Modi.

Pharma remains in focus

A recovery in auto stocks helped the market extend gains, along with a focus on IT and pharma stocks. Metal stocks which gained in the first half, lost momentum in the second half

On the sectoral front, Nifty Pharma continued to gain, ending 1.90 per cent higher. Nifty Auto and Nifty IT were up 1.21 per cent, each at closing. Nifty Metal was up 0.83 per cent. 

Meanwhile, Nifty Bank was down 0.42 per cent while Nifty Financial Services was down 0.16 per cent.  

Mid and small-caps outperform 

All broader indices closed in the green. Midcap and smallcap stocks recovered from the previous session’s losses and outperformed the benchmark indices on Friday. 

The Nifty Midcap 50 was up 0.78 per cent at closing, while Nifty Smallcap 50 was up 1.35 per cent. The S&P BSE Midcap was up 1.17 per cent and S&P BSE Smallcap was up 1.05 per cent. 

The volatility index softened 2.33 per cent down to 20.40.

“Midcap and small cap indices outperformed broader indices today as recent fall in the space made investors to do bargain trading in quality midcap and small cap space,” said Modi.

Published on April 16, 2021

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