Benchmark indices maintained a positive momentum on Monday with energy, pharma, and metal stocks leading the rally.

Market, after opening on a positive note amid bullish global cues, extended gains through the day. The BSE Sensex, which hit a high of 49,617.47 during the day, closed at 49,502.41, up 295.94 points or 0.60 per cent. The index hit an intraday low of 49,412.05. The Nifty 50 closed at 14,942.35, up 119.20 points or 0.8 per cent. The broader benchmark hit an intraday high of 14,966.90 and a low of 14,892.50.

The breadth of the market remained largely positive with 2,068 stocks advancing, 1,038 declining and 224 remaining unchanged on the BSE. As many as 516 securities hit the upper circuit and 189 the lower circuit; 358 hit their 52-week high while 63 touched 52-week low.

Binod Modi, Head Strategy at Reliance Securities. said, “Domestic equities continued to defy concerns of rising Covid-19 cases and extended mobility restrictions by several state by extending gains for the fourth consecutive trading day.”

“We note that favourable global cues, steady March quarter earnings along with favourable commentary, liquidity support announced by the RBI and absence of nationwide lockdown have aided domestic equities to shrug off rising Covid-19 cases in the country. However, elevated daily caseload, higher positivity rate and rising Covid-19 cases in hinterlands of the country are expected to weigh on investors’ sentiments and will prevent market to take any decisive up-move,” added Modi.

Coal India, Hindalco, UPL, IOC and L&T were the top gainers on the Nifty 50 while Shree Cements, Ultratech Cement, Britannia, Infosys and Hero Motocorp were among the top laggards.

Coal India was the top gainer, up 8.22 per cent at closing.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestic bourses continued to ride on its optimistic wave mirroring strong across-the-board buying with metals, auto and pharma stocks leading the rally. U.S job growth significantly slipped its April forecast signalling sluggish momentum in the labour market while a cyber attack hiked the US oil prices.”

“Despite a decline in April auto sales numbers due to the impact of covid lockdowns, the auto sector managed to stay afloat owing to its long-term positive outlook," said Nair.

OMCs on a high

The shares of oil marketing companies including the Indian Oil Corporation (IOC) gained as petrol and diesel prices hit record highs across the country on Monday after rates were increased. Petrol price was hiked by 26 paise a litre and diesel by 33 paise per litre.

IOC closed 4.75 per cent higher. HPCL and BPCL were up 1.77 per cent and 2.34 per cent respectively.

Metals shine

On the sectoral front, all indices closed in the green. The rally today was majorly led by Nifty Pharma, Metal, Auto and PSU Bank stocks. The Nifty Metal recorded the highest gains by closing 3.14 per cent higher.

The Nifty Pharma was up 2.80 per cent at closing. It touched an all-time high of 14,228.40. The Nifty Auto was up 1.56 per cent at closing. The Nifty PSU Bank was up 1.38 per cent.

“Notably, sharp rebound in metals, pharma, auto and PSU Banks supported market’s rally today. Most of key sectoral indices traded in green today,” said Modi.

Mid & small-caps outperform

All broader indices were also in the green as midcap and smallcap stocks outperformed the benchmarks.

Nifty Midcap 50 was up 1.46 per cent while Nifty Smallcap 50 was up 1.67 per cent. The S&P BSE Midcap was up 0.97 while the S&P BSE Smallcap was up 0.94 per cent.

The volatility index softened 2.86 per cent to 20.23.

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