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Stock market benchmark indices closed higher at the end of a volatile session on Thursday. Market opened on a positive note despite mixed global cues and remained volatile through the day. Indices closed higher, led by financials and metals.
The BSE Sensex closed at 54,252.53, up 503.27 points or 0.94 per cent. It recorded an intraday high of 54,346.22 and a low of 53,425.25. The Nifty 50 closed at 16,170.15, up 144.35 points or 0.9 per cent. It recorded an intraday high of 16,204.45 and a low of 15,903.70.
Breadth turns positive
The market breadth turned positive with 1,748 stocks advancing on the BSE as against 1,552 that declined, while 129 remained unchanged. Furthermore, 11 stocks hit the upper circuit as compared to the 5 stocks that were locked in the lower circuit. Besides, 246 stocks touched a 52-week low level and 49 touched a 52-week high.
The volatility index softened 10.14 per cent to 22.72.
Market remained volatile due to the settlement of monthly derivative contracts on the NSE today.
Vinod Nair, Head of Research at Geojit Financial Services said, “After the heavy sell-off, market showed signs of exhaustion and could bounce for the short to medium-term. Technically, the broad market is in the oversold territory and fundamentally valuations are just below the three-year average.”
“A key reason for the current correction is selling by FIIs and a reduction in domestic buying. A drop in FIIs selling will be an important reason for the bounce. For this, the actions to be undertaken by FED and RBI in June will be an important factor. Moreover, we should note that the fiscal measure announced by the Indian government to control inflation is positive for the domestic market,” Nair added.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “Markets witnessed healthy short covering towards the closing hours that helped key indices to reverse the three-day losing streak. With the US FOMC minutes out of the way now, the market is more or less getting prepared for the likely rate hikes, and hence we saw strong buying on the F&O expiry day.”
“While we may see bouts of selling going ahead due to other negative factors like higher inflation, continuous FII selling, and the Russia-Ukraine conflict, relief rallies will still be seen amidst volatility,” added Chouhan.
Tata Steel, Apollo Hospitals, State Bank of India and HDFC Bank were the top gainers on the Nifty, 50 while UPL, Divi’s Labs, Sun Pharma, Reliance and ONGC were the top losers.
Metals, financials in focus
On the sectoral front, all indices except Nifty FMCG closed in the green. Nifty FMCG was down 0.22 per cent at closing.
Meanwhile, Nifty PSU Bank closed over 3 per cent higher, while Nifty Metal was up nearly 3 per cent. Nifty Bank was up over 2 per cent at closing. Nifty Financial Services and Nifty Private Bank each closed nearly 2 per cent higher, while Nifty IT and Nifty Realty were up over 1 per cent.
Broader indices
Broader market managed to recover from previous losses. Nifty Midcap 50 was up 1.26 per cent at closing, while Nifty Smallcap 50 was up 1.29 per cent. The S&P BSE Midcap was up 1.44 per cent while the S&P BSE Smallcap was up 0.78 per cent.
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