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The market rebounded sharply, with benchmark indices closing higher as financials gained focus along with pharma, metals and auto.
Market, after a firm opening amid positive global cues, extended gains in the second half. Heavyweights such as HDFC, ICICI and Axis Bank led the rally through the day.
The BSE Sensex closed at 52,769.73, up 397.04 points or 0.76 per cent. It hit an intraday high of 52,806.86 and a low of 52,545.68. The Nifty 50, after surpassing the 15,800-mark with an intraday high of 15,820.80, closed at 15,812.35, up 119.75 points or 0.76 per cent. It hit an intraday low of 15,744.60.
Breadth remains positive
The breadth of the market remained positive, with 1,854 stocks advancing, 1,360 declining and 141 remaining unchanged on the BSE. As many as 519 securities hit the upper and 210 lower circuits; 513 hit their 52-week high while 11 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities recovered sharply today mainly of favourable global cues and steady economic data. Notably, sharp recovery in heavyweight financials supported market rally today.”
“We note improved visibility of credit growth on the back of visible rebound in economic activities and comfortable valuations attracted investors towards financials,” said Modi.
ICICI Bank, Grasim, HDFC, Axis Bank and SBI Life were the top gainers on the Nifty 50 while Adani Ports, Dr Reddy, HCL Tech, Tata Consumer and Tech Mahindra were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said: "Following favourable economic outcome and positive Asian markets, domestic bourses traded positive today. Asian shares sparked a rally after better-than-expected Chinese economic data and a bounce back in Chinese tech stocks.”
“Though June CPI inflation continued to remain above RBI’s tolerance level, it eased to 6.26 per cent from 6.30 per cent in the previous month giving some relief to the market. Industrial production (IIP) for May grew 29.3 per cent YoY essentially due to a lower base," said Nair.
Analysts expect RBI to maintain its accommodative policy in the medium term to support economic activities.
IT, FMCG under pressure
On the sectoral front, all indices except Nifty IT, Nifty FMCG and Nifty Media closed in the green. Financials continued to remain bullish. Pharma, metals and auto also gained. Nifty IT was down 0.32 per cent while Nifty FMCG was down 0.18 per cent.
Meanwhile, Nifty Bank and Nifty Financial Services were up 1.35 per cent and 1.48 per cent, respectively. Nifty Private Bank was up 1.38 per cent while Nifty PSU Bank was up 0.78 per cent. Nifty Pharma was up 0.61 per cent. Nifty Metal was up 0.63 per cent. Nifty Auto closed 0.57 per cent higher.
Broader indices
Broader indices also closed in the green. Nifty Midcap 50 was up 0.24 per cent while Nifty Smallcap 50 was up 1.19 per cent. The S&P BSE Midcap was up 0.01 per cent while the S&P BSE Smallcap was up 0.46 per cent. The volatility index softened 2.84 per cent to 12.62.
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