Market rebounds sharply on positive global cues

Our Bureau. Mumbai | Updated on July 22, 2021

Sensex up 638 points at closing, Nifty above 15,800 as metals, financials and IT lead rally

The market rebounded sharply after two consecutive days of losses, with benchmark indices ending one per cent higher.

After opening positively, the market gained momentum further through the day, led by a sharp recovery in financials, metals and IT stocks.

The BSE Sensex closed at 52,837.21, up 638.70 points or 1.22 per cent. It hit an intraday high of 52,867.26 and a low of 52,471.23. The Nifty 50 closed at 15,824.05, up 191.95 points or 1.23 per cent near the day's high of 15,834.80. It hit an intraday low of 15,726.40.

Market breadth turns positive

The breadth of the market turned positive, with 2,184 stocks advancing, 1,066 declining and 138 remaining unchanged on the BSE. As many as 521 securities hit the upper circuit and 213 lower; 460 hit their 52-week high while 17 touched a 52-week low.

JSW Steel, Tech Mahindra, Bajaj Finance, Bharti Airtel and Tata Steel were the top gainer on the Nifty 50, while Hindustan Unilever, Asian Paints, Bajaj Auto, Cipla and Mahindra & Mahindra were the top laggards.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, “Indian markets started on a positive note following upbeat Asian markets as investors await the latest monetary policy announcement from the European Central Bank.”

“During the afternoon session markets traded at day’s high on the back broad-based buying in frontline blue-chip counters by fund and retail investors. The rally in domestic equities was also triggered by positive reaction to the latest batch of earnings reports from several big companies in the US, which indicated that the world's biggest economy is on the path of recovery,” added Solanki.

All sectors shine

On the sectoral front, all indices closed in green. Financials, metals, IT and realty recovered sharply. Nifty Bank and Nifty Financial Services were up 0.76 per cent and 1.26 per cent, respectively. Nifty Private Bank was up 0.89 per cent, while Nifty PSU Bank was up 0.93 per cent.

Nifty Metal and Nifty Realty were up 2.99 per cent and 1.75 per cent, respectively. Nifty IT was up 1.80 per cent.

Broader indices

Broader indices were also in the green as mid-cap and small-cap stocks recovered. Nifty Midcap 50 was up 1.13 per cent, while Nifty Smallcap 50 was up 1.36 per cent. The S&P BSE Midcap was up 1.49 per cent, while the S&P BSE Smallcap was up 1.52 per cent.

The volatility index fell 9.99 per cent to 11.89.

Published on July 22, 2021

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