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Benchmark indices, after opening strong and maintaining the gains during the most part of the day, closed flat on Monday owing to market volatility and weak global cues. At the closing bell, the BSE Sensex was at 50,441.07, up 35.75 points or 0.07 per cent as against the previous close of 50,405.32. It hit an intraday high of 50,985.77 and an intraday low of 50,318.26.
The Nifty 50 was at 14,956.20, up 18.10 or 0.12 per cent. It opened at 15,002.45 as against the previous close of 14,938.10. It hit an intraday high of 15,111.15 and an intraday low of 14,919.90.
Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities traded mostly positive today despite soft global cues. A sharp recovery in PSU Banks, IT and Metals indices lent support to markets. Barring realty and FMCG, most of the key sectoral indices ended in the green. Notably, volatility index softened by over 4 per cent today offering some comfort to investors."
ONGC, Larsen & Toubro, HCL Tech, NTPC and Axis Bank were among the top gainers on the BSE. While Maruti, Dr Reddy, ICICI Bank, ITC and Kotak Bank were the top laggards.
On the NSE, UPL, GAIL India, L&T, ONGC and SBI Life Insurance Company Limited were the top gainers while IndusInd Bank, Shree Cement Limited, Bajaj Finance, Ultratech Cement and Bajaj Auto were the top laggards.
As many as 1,698 shares advanced on Monday while 1,382 declined and 208 remain unchanged on the BSE. As many as 280 scrips hit their 52-week high while 70 hit 52-week low even as 412 touched the upper circuit.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd, said, “The market witnessed an attempt to break above the resistance level around the Nifty 50 Index level of 15,100. However, the market failed to hold on to that level and gave up its early gain to ended marginally positive for the day. The expected levels of the Nifty are likely to be in the range of 14,900 and 15,250, and it’s going to crucial for the short-term market scenario to sustain above the 14900 Nifty50 Index level.”
The market benefitted from a recovery in PSU Banks and Metal during the day. The Nifty PSU Bank index gained the most among sectoral indices. It closed at 2,378.55, up 1.60 per cent. The Nifty Metal index closed at 3,900.80, up 0.81 per cent.
Oil & Gas stocks were in major focus as the Brent crude prices hit their highest level since January 2020. Brent crude has crossed the $70-mark to rule at $71.10 per barrel. S&P Oil & Gas index hit a 52-week high of 16588.3 during the day. It closed at 16,350.83, up 260.03 points or 1.62 per cent.
Despite the market correction, analysts remain positive amid a faster recovery in economic growth and new reforms.
“We continue to believe that recent rise in bond yield is discounting a faster recovery in economic growth and this is unlikely to move northward beyond a point. However, spread of over 465 bps between India’s GSec Yield and USA Treasury Yield along with weak dollar index still offers comfort,” said Modi.
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