Forex

Sensex ends near 62k, Nifty above 18,400

Our Bureau Mumbai | Updated on October 18, 2021

Metals, PSU Bank stocks lead rally; pharma under pressure, Volatility index above 17

Benchmark indices recorded another fresh high on Monday, as bulls continued their dominance.

Despite weak global cues, markets were at an all-time high during the early trade on all-around buying. Benchmark indices closed at record highs amid volatility, led by metals, PSU bank stocks and IT. The BSE Sensex neared the 62,000-mark while Nifty topped 18,500 during the day. Pharma and healthcare stocks witnessed profit-booking.

Amid the rally, the volatility index jumped nearly 9 per cent to close at 17.19, signalling concern among investors.

The BSE Sensex which recorded a fresh all-time high of 61,963.07, closed at a record high of 61,765.59, up 459.64 points or 0.75 per cent. It hit an intraday low of 61,624.65. The Nifty50 closed at a record 18,477.05, up 138.50 points or 0.76 per cent, after witnessing a fresh all-time high of 18,543.15. It recorded an intraday low of 18,445.30.

Breadth remains positive

The market breadth remained positive with 1,830 stocks advancing on the BSE, 1,616 declining and 178 remaining unchanged. Furthermore, 422 stocks hit the upper circuit as compared to the 268 stocks that were locked in the lower circuit. Besides, 396 stocks touched a 52-week high level and 31 touched a 52-week low.

S Ranganathan, Head of Research at LKP Securities, said, "Metals & PSU Banks led the Sensex closer to the 62K mark today even as we saw mixed trends in other sectoral indices with profit-taking observed in few over-owned names.”

Robust home sales witnessed in several cities during the September quarter do indicate a multiplier effect in several sectors as the earnings season is underway ahead of the Festive season, he said and added the broader markets remained buoyant with the Small & Midcap indices showing robust activity today.

Hindalco, Infosys, Tech Mahindra, JSW Steel and Tata Motors were the top gainers on the Nifty 50 while Mahindra & Mahindra, HCL Tech, Dr Reddy, Asian Paints and Britannia were the top losers.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, Indian markets started on a positive note despite weak Asian market cues which traded lower as data showed China’s economy grew less than expected in the third quarter. During the afternoon session markets continued to trade firm amid sustained buying across the board.

“The sentiment was buoyant with the early data showed Indian economy bouncing back strongly, domestic consumption increasing and industrial production is likely at pre-Covid level. On the sectoral front, shares of metal companies were in focus on rising base metal prices amid higher demand expectations,” added Solanki.

Pharma, healthcare under pressure

On the sectoral front, metals, IT and PSU Bank stocks led the rally while pharma and healthcare stocks witnessed profit-booking.

Nifty Metal and Nifty PSU Bank were up 3.89 per cent and 3.98 per cent, respectively. Nifty IT was up 1.57 per cent. Meanwhile, Nifty Pharma and Nifty Healthcare Index were down 0.89 per cent and 0.82 per cent, respectively.

Broader indices

The rally extended to broader market as mid-caps and small-caps also gained.

Nifty Midcap 50 was up 1.61 per cent while Nifty Smallcap 50 was up 0.59 per cent. The S&P BSE Midcap was up 0.95 per cent while the S&P BSE Smallcap was up 0.69 per cent.

Published on October 18, 2021

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