Stocks

Sensex nears 57,000, Nifty moves towards 17,000

Our Bureau Mumbai | Updated on August 30, 2021

Metal stocks keep benchmarks buoyant; rally percolates to broader markets

Bulls dominated the market on Monday as benchmark indices closed at record highs, led by metals.

Market witnessed a gap-up opening following dovish comments by the US Fed Chair Jerome Powel at the Jackson Hole symposium, and extended gains through the day. All sectors, barring IT, traded in the green during the day.

The BSE Sensex, which is nearing the 57,000-mark, recording a fresh all-time high of 56,958.27, closed at 56,889.76, up 765.04 points or 1.36 per cent. It recorded an intraday low of 56,309.86. The Nifty 50 is also nearing the 17,000-mark with a fresh all-time high of 16,951.50. It closed at a record high of 16,931.05, up 225.85 points or 1.35 per cent. It recorded an intraday low of 16,764.85.

Market breadth positive

The breadth of the market remained positive as 2,222 stocks advanced on the BSE, as compared to 1,096 stocks that declined while 179 remained unchanged. Furthermore, 426 stocks hit the upper circuit as compared to the 222 stocks that were locked in the lower circuit. Besides, 211 stocks touched a 52-week high and 32 touched a 52-week low.

Broad-based rally

S Ranganathan, Head of Research at LKP securities, said, “Indices and stocks surged through the day on positive global cues, buoyed by the Fed commentary. The rally today was pretty much broad-based as expectations on the first-quarter GDP numbers, slated to be released tomorrow, aided investor sentiment.”

Vinod Nair, Head of Research at Geojit Financial Services, said, “Following a strong gap-up opening, equity benchmark indices maintained the trend throughout the day in line with the strength in global markets. Global markets strengthened as the anxiety over the Jackson Hole symposium subsided following the dovish tone of the Fed Chair. Powell, stated to stick with the wait-and-see approach, giving reassurance that the easy money policy will continue this year with a smaller rate of tapering.”

Bharti Airtel, Divi’s Labs, Axis Bank, Tata Steel and Coal India were the top gainers on the Nifty 50 while Tech Mahindra, Nestle India, Eicher Motors, Infosys and Wipro were the top laggards.

Bharti Airtel stocks gained after the company’s board of directors approved a plan to raise further capital. The telecom services provider has announced a ₹21,000-crore rights issue. Airtel was up 5 per cent at closing on the NSE.

IT under pressure

On the sectoral front, all indices except Nifty IT closed in the green, with metals and financials leading the rally at closing.

Nifty IT was down 0.58 per cent.

Meanwhile, Nifty Metal closed 2.47 per cent higher. Nifty Bank was up 2.02 per cent. Nifty Financial Services was up 1.85 per cent, Nifty PSU Bank and Nifty Private Bank closed 2.04 per cent and 2 per cent higher, respectively.

Pharma and Realty also gained nearly 2 per cent at closing.

Broader indices outperform

Broader indices also rallied, outperforming the benchmarks.

Nifty Midcap 50 was up 1.95 per cent while Nifty Smallcap 50 was up 1.39 per cent. The S&P BSE Midcap was up 1.72 per cent while the S&P BSE Smallcap was up 1.55 per cent.

The volatility index fell 0.65 per cent to 13.32.

Binod Modi, Head Strategy at Reliance Securities, said, “Strong buying in midcap and smallcap stocks continued today as recent correction made risk-reward propositions favourable for investors.”

Published on August 30, 2021

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