Benchmark indices close in the green; IT, auto and metals in focus

Our Bureau Mumbai | Updated on May 06, 2021

Sensex up 272 pts at closing, Nifty above 14,700

Market closed in the green, led largely by IT, metal and auto stocks. The BSE Sensex closed at 48,949.76, up 272.21 points or 0.56 per cent. It hit an intraday high of 49,011.31 and an intraday low of 48,614.11. The Nifty 50 closed at 14,724.80, up 106.95 points or 0.73 per cent. It hit an intraday high of 14,743.90 and an intraday low of 14,611.50.

The market breadth was positive with 1,650 stocks advancing against 1,347 declining and 130 remaining unchanged on the BSE. As many as 351 securities hit the upper circuit and 182 hit the lower circuit while 245 hit their 52-week high and 32 touched 52-week low.

Hindalco, Hero Motocorp, Wipro, Tata Motors and Tata Steel were among the top gainers on the Nifty 50 while UPL, Bajaj Finserv, PowerGrid, Sun Pharma and NTPC were among the laggards.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said: “Indian markets opened on a positive note following mixed Asian market cues as investors look ahead to the US jobs report this week for clues about how long the Fed will stay on hold.”

“During the afternoon session markets pared some gains but soon scaled back to trade in green as traders were seen piling up positions in metal, auto and IT sectors while selling was witnessed in healthcare and energy sector stocks,” said Solanki.

The decision by the US to back India and South Africa's proposal before the World Trade Organisation to waive Covid-19 vaccine patents to temporarily boost its supply is also a major positive.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Amidst rising covid cases, hopes of recovery through vaccine drives and a positive global market is aiding the domestic market to ride a positive wave. Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism.”

Sectoral and broader indices

Among the sectoral indices, IT metal and auto stocks recorded gains while Pharma and Bank stocks lagged behind. All indices except Nifty Pharma, Nifty PSU Bank and Nifty Private Bank were in the green.

Nifty Metal recorded the highest gains and closed 2.51 per cent higher. Nifty IT was up 1.83 per cent while Nifty Auto was up 1.78 per cent at closing.

Nifty Pharma was down 0.23 per cent,while Nifty PSU Bank and Nifty Private Bank were down by 1.17 per cent and 0.06 per cent, respectively.

All broader indices were also in the green with midcap and smallcap indices outperforming the benchmarks.

Nifty Midcap 50 was up 1.27 per cent and the Nifty Smallcap 50 was up 0.66 per cent. The S&P BSE Midcap was up 0.91 per cent while the S&P BSE Smallcap was up 0.59 per cent.

Nair said, "Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid and small-cap stocks mirrored the trend.”

Notably, the volatility index also rose 0.33 per cent to 22.04.

Published on May 06, 2021

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