Benchmark indices closed at record highs on Thursday, led by IT and PSU Bank stocks.

Market opened on a positive note, tracking global cues and gained further during the day, witnessing gains across the majority of counters. Pharma and healthcare stocks remained under pressure throughout the day.

The BSE Sensex is less than 200 points away from breaching the 59,000 mark, recording an all-time high of 54,874.10. It closed at a record 54,843.98, up 318.05 points or 0.58 per cent. It recorded an intraday low of 54,536.65. The Nifty 50 also closed at a record high of 16,364.40, up 82.15 points or 0.5 per cent. It recorded a new all-time high of 16,375.50 and a day’s low of 16,286.90.

Market breadth turns positive

The breadth of the market turned positive as indices scaled new peaks. As many as 2,357 stocks advanced on the BSE, as compared to 844 stocks that declined, while 125 remained unchanged. Furthermore, 445 stocks hit the upper circuit as compared to the 280 stocks that were locked in the lower circuit. Besides, 189 stocks touched 52-week high level and 20 touched a 52-week low

Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities recovered sharply mainly led by a sharp rebound in IT and PSU banks. Additionally, strong buying was seen in midcap and small-cap stocks today after persistent selling for the last couple of days.”

“IT stocks remained in focus today and investors continue to lap-up quality IT names as sustained double-digit revenue growth visibility backed by strong deal wins and better earnings visibility compared to other industries offer comforts. Notably, barring pharma, most key sectoral indices traded in the green today, while meaningful correction in quality midcap and smallcap stocks attracted investors today in these spaces,” added Modi.

Powergrid, Tech Mahindra, Tata Motors, L&T and HCL Tech were the top gainers on the Nifty 50 while Eicher Motors, Dr Reddy, Cipla, IOC and ONGC were the top laggards.

Pharma, healthcare under pressure

On the sectoral front, all indices except Nifty Pharma and Nifty Healthcare closed in the green.

IT, PSU Bank and realty recorded the highest gains while pharma and healthcare remained under pressure.

Nifty IT was up 1.82 per cent at closing while Nifty PSU Bank was up 1.26 per cent. Nifty Realty was up 1.21 per cent.

Meanwhile, Nifty Pharma was down 1.11 per cent while Nifty Healthcare Index was down 0.39 per cent.

Smallcaps, midcaps shine

The broader market recovered after the BSE on Wednesday clarified the new additional surveillance rules aimed at curbing excessive price movement which had led to a massive sell-off in the broader market earlier in the week.

The BSE said that the new add-on price band framework is applicable now only to BSE exclusive securities in groups ‘X, XT, Z, ZP, ZY, Y’ and on companies which have market capitalisation of less than ₹1,000 crore. The clarification also said that the securities should have a price of ₹10 and more, as on the date of review, among others. These additional norms will be applicable from August 23.

The Nifty Midcap 50 was ruling 1.10 per cent higher at closing while the Nifty Smallcap 50 was up 2.07 per cent. The S&P BSE Midcap was up 1.07 per cent while the S&P BSE Smallcap was up 1.97 per cent.

The volatility index fell 2.67 per cent to 12.37 .

“Notably, recent rally in domestic market was not a broad-based rally as heavy profit booking was visible in midcap and smallcap stocks,” said Modi.

“Heavy selling pressure in midcap and smallcap stocks was also attributed to stringent measures announced by BSE to check excessive price moves. However, BSE issued fresh clarification yesterday on the same, which offered comfort to investors. Additionally, after witnessing a sharp outperformance in last couple of months, profit booking in midcap and smallcap stock was anticipated,” he added.

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