The new month started on a strong note for the domestic markets, thanks to positive economic data. Led by Auto and IT stocks, the benchmark indices closed higher on Monday.

Markets, which opened firmly thanks to higher GST collections in July and improved sales by automobile companies, sustained the bull momentum throughout the day.

The BSE Sensex closed at 52,950.63, up 363.79 points or 0.69 per cent. It hit an intraday high of 52,986.77 and a low of 52,804.08. The Nifty 50 rallied 122.10 points or 0.77 per cent at closing to close near the 15,900-mark at 15,885.15 after reaching an intraday high of 15,892.90. It hit an intraday low of 15,834.65.

Breadth remains positive

The market breadth remained positive with the advance to decline ratio being 2:1. 2,178 stocks advanced, 1,158 were declined and 166 stocks remained unchanged on the BSE. While 609 stocks hit an upper circuit, 228 were locked in the lower circuit. As many as 545 stocks touched 52-week high level and 30 touched a 52-week low.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, “Indian markets started on a positive note following upbeat Asian market peers as China’s official manufacturing PMI released over the weekend also showed factory activity growth in July.”

“During the afternoon session, the markets maintained their upward momentum following gains in Realty, Energy and Consumer Durables stocks. Healthy buying was also observed in blue-chip stocks,” said Solanki.

PMI data booster

Investor sentiments were further boosted as the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months.

Adding more positivity, Union Finance Minister Nirmala Sitharaman states that Goods and Services Tax (GST) collection for July 2021 has again crossed ₹1 lakh crore with easing out of Covid-19 restrictions and added it indicates that the economy is recovering at a fast pace, said Solanki.

Titan, Shree Cements, BPCL, Adani Ports and Eicher Motors were the top gainers on the Nifty 50 while UPL, Tata Steel, Bajaj Finserv, Bajaj Finance and Tech Mahindra were the top laggards.

Auto, Realty and IT shine

On the sectoral front, all indices closed in the green, led by auto, realty and IT.

Auto stocks rallied on the back of better performance by passenger car makers in July, with a majority of automakers reporting double-digit growth in domestic wholesales numbers on a month-on-month (MoM) basis. Nifty Auto was up 1.34 per cent at closing. Realty stocks also rallied with Nifty Realty closing 4.79 per cent higher. Nifty IT was up 1.06 per cent.

Broader indices

Broader indices were also in the green as midcap and smallcap stocks continue to outperform the benchmarks. Nifty Midcap 50 was up 1.57 per cent while Nifty Smallcap 50 was up 0.96 per cent.

The S&P BSE Midcap was up 1.05 per cent while the S&P BSE Smallcap was up 1.07 per cent.

The volatility index ended flat, up 0.01 per cent to 12.81.

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