Sensex, Nifty maintain momentum

Our Bureau Mumbai | Updated on October 18, 2021

Metals lead rally; pharma, healthcare face pressure, volatility index rises above 17

Benchmark indices were trading higher during the afternoon on Monday, after recording fresh highs during the morning session.

Markets extended rally with indices trading at all-time highs after opening on a firm note despite weak global cues, witnessing all-around buying. The BSE Sensex neared the 62,000 mark while Nifty topped 18,500. The rally was led by metals while pharma and healthcare stocks witnessed profit-booking.

Amid the rally, the volatility index jumped over 8 per cent, signalling concern among investors. At 1 pm, the volatility index rose 8.43 per cent to 17.10.

Also read: Nifty Call: Nifty 50 October futures (18,495)

The BSE Sensex, which recorded a fresh all-time high of 61,962.16, was trading at 61,853.90, up 547.95 points or 0.89 per cent. It hit an intraday low of 61,624.65. The Nifty 50 was trading near its all-time high of 18,543.15 recorded during the day at 18,511.10, up 172.55 points or 0.94 per cent. It recorded an intra-day low of 18,445.30.

Hindalco, JSW Steel, Infosys, Tata Steel and Tata Motors were the top gainers on the Nifty 50 while HCL Tech, Asian Paints, M&M, Dr Reddy and Bajaj Auto were the top laggards.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The uptrend in the market looks set to continue on the back of positive news. India, nearing the 100 crore vaccination mark and zero Covid deaths in some States, is now witnessing robust consumption demand in many segments. HDFC Bank numbers declared last Saturday show 15.5 per cent growth in credit disbursals and indicate sharp pick up in credit growth in the festival season. Bank Nifty which has been an outperformer this month is likely to continue its uptrend. In the short-term the market momentum is so strong that it is likely to eclipse valuation concerns.”

Also read: Rupee trades almost flat at 75.28 against dollar in opening deals

“FIIs turning strong buyers again in the cash market with ₹1,682 crore buying last Thursday is likely to embolden the bulls. On the flip side, rising crude (Brent above $85) and sustained uptrend in commodity prices are macro headwinds for the Indian economy,” added Dr Vijayakumar.

Metals shine, pharma under pressure

On the sectoral front, metals and financials, mainly PSU Bank stocks led the rally. IT, Oil & Gas and consumer durables also gained. Meanwhile, Pharma and healthcare stocks witnessed profit-booking. Nifty Metal recorded the highest gains and was up 4.38 per cent. Nifty Metal recorded a fresh 52-week high of 6,291.55.

Also read: Sensex rallies over 500 points to hit new peak

Nifty PSU Bank was up 3.55 per cent while Nifty Private Bank was up 1.21 per cent. Nifty Bank and Nifty Financial Services were up 1.18 per cent and 0.73 per cent, respectively. Nifty IT was up 1.19 per cent while Nifty Consumer Durables was up 1.14 per cent. Nifty Oil & Gas was up 1.23 per cent. Meanwhile, Nifty Pharma and Nifty Healthcare Index were down 0.36 per cent and 0.32 per cent, respectively.

Broader indices

The rally extended to broader market as midcaps and smallcaps also gained. Nifty Midcap 50 was up 1.73 per cent while Nifty Smallcap 50 was up 0.79 per cent. The S&P BSE Midcap was up 1.19 per cent while the S&P BSE Smallcap was up 1.05 per cent.

Published on October 18, 2021

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