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Market rebounded sharply on Monday, led by banking and financials. Benchmark indices gained nearly 2 per cent, led by heavyweights such as HDFC Bank and ICICI Bank. According to analysts, a decline in the Covid-19 active caseload and strong Q4 results so far by India Inc have boosted the sentiment of investors, who resorted to across-the-board buying.
The BSE Sensex closed at 49,580.73, up 848.18 points or 1.74 per cent after hitting the day’s high of 49,628.42 in the second half and a low of 48,923.13. The Nifty 50 closed at 14,923.15, up 245.35 points or 1.67 per cent. It hit an intraday high of 14,938.00 and a low of 14,725.35.
The breadth of the market turned positive with 2,099 stocks advancing, 1,051 declining and 209 remaining unchanged on the BSE. As many as 495 securities hit the upper circuit and 219 the lower circuit; 290 hit their 52-week high while 51 touched 52-week low.
Binod Modi, Head Strategy, Reliance Securities, said, “Domestic equities witnessed strong rebound today as robust 4QFY21 earnings and early sign of decline in second wave of daily caseload bolstered investors’ confidence. A strong recovery in financials followed by auto and metals supported market’s rally today. Notably, defensive sectors like IT, Pharma and FMCG appeared soft today.”
Today’s strong rebound in domestic market helped investors’ wealth to grow almost ₹3 lakh crore in a single day, Modi further noted.
IndusInd Bank, State Bank of India, ICICI Bank, HDFC Bank and Axis Bank were among the top gainers on the Nifty 50 while Cipla, L&T, Bharti Airtel, SBI Life and Nestle India were among the top laggards.
Financials rally as pharma drags
All sectoral indices except Nifty Pharma and Nifty Media were in the green as financials and bank stocks led the rally. Metal and auto stocks also witnessed recovery.
Nifty Bank was up 4.01 per cent while Nifty Financial Services was up 3.20 per cent.
Nifty Private Bank and Nifty PSU Bank were up 3.80 per cent and 3.81 per cent, respectively. Nifty Auto was up 1.95 per cent. Nifty Metal was up 2.29 per cent.
Nifty Pharma, however was down 0.19 per cent.
Broader indices
All broader indices were also in the green.
Nifty Midcap 50 was up 1.87 per cent while Nifty Smallcap 50 was up 1.04 per cent. The S&P BSE Midcap was up 1.63 per cent while the S&P BSE Smallcap was up 1.61 per cent.
Notably, the volatility index softened 3.25 per cent to 19.61.
“It was a broad-based rally today, wherein midcap and small cap stocks equally witnessed sharp uptick,” said Modi.
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