Benchmark indices were trading higher during the afternoon on Monday.

Market opened on a muted note amid mixed global cues. Indices edged higher in the first half and were trading higher during the afternoon led by buying in IT and financials. 

At 1 pm, the BSE Sensex was trading at 56,135.88, up 585.58 points or 1.05 per cent, near the day’s high of 56,190.00. It recorded an intraday low of 55,556.47. The NIfty 50 was trading at 16,761.15, up 130.70 points or 0.79 per cent. It recorded an intraday high of 16,782.30 and a low of 16,606.50.

State Bank of India, Infosys, HDFC Bank, ICICI Bank and Axis Bank were the top gainers on the Nifty 50 while ONGC, IOC, Tata Motors, Coal India and Hindalco were the top laggards. 

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “The decline in crude from the recent high of $140 to below $110 and declining trends in most metal prices indicate that the feared high inflation may not materialize. There are two significant trends in the market now: One, FPI selling has come down significantly; two there is value buying in the mid-and small-cap segment. Quality stocks with earnings visibility in the broader market are attracting investment from mutual funds and retail investors.”

Investors are now looking forward to the outcome of the Fed meet expected on Wednesday. 

IT, financials in focus

On the sectoral front, metals, realty and oil & gas faced increased pressure while IT and financials gained.

Nifty IT was up 1.28 per cent. Nifty Bank, Nifty Private Bank and NIfty PSU Bank were trading 1.71 per cent, 1.45 per cent and 1.12 per cent higher, respectively. Nifty Financials Services was up 1.51 per cent.

Meanwhile, Nifty Metal was down 1.48 per cent. Nifty Realty was down 1.72 per cent while Nifty Oil & Gas was down 1.11 per cent.

Midcaps under pressure

Broader indices were in the red with midcaps recording higher losses.

Nifty Midcap 50 was down 0.34 per cent while Nifty Smallcap 50 was down 0.19 per cent. The S&P BSE Midcap was down 0.53 per cent while the S&P BSE Smallcap was trading flat. 

The volatility index rose 2.69 per cent to 26.03.

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