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Market rebounded sharply on Monday with benchmark indices closing higher, led by metals and IT. Market opened on a positive note amid strong global cues and surged further. Strong PMI data and higher GST collection figures invigorated across-the-board buying.
The BSE Sensex closed at 60,138.46, up 831.53 points or 1.40 per cent. It recorded an intraday high of 60,220.21 and a low of 59,355.12. The Nifty 50 closed at 17,929.65, up 258.00 points or 1.46 per cent. It recorded an intraday high of 17,954.10 and a low of 17,697.10.
Breadth turns positive
The market breadth turned positive with 2,160 stocks advancing on the BSE, 1,148 declining and 193 remaining unchanged. Furthermore, 403 stocks hit the upper circuit as compared to the 233 stocks that were locked in the lower circuit. Besides, 190 stocks touched a 52-week high level and 32 touched a 52-week low.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, “Indian markets opened on a positive note following largely positive Asian markets as investors react to mixed China factory activity data for October.”
“During the afternoon session, markets continued to trade in positive terrain due to buying in realty, telecom and metals sector. Buying in frontline stocks also pushed the key indices higher. Sentiments were upbeat as a monthly survey said that India's manufacturing sector activities gained further strength in October as companies scaled up production and stepped-up input purchasing in anticipation of further improvements in demand,” said Solanki.
The GST numbers also boosted market sentiments further. The GST data released today posted the second-highest ever GST collection of ₹1.3 lakh crores, a growth of 24 per cent YoY.
Market recovered from the losses after ending lower for three consecutive sessions last week amid sustained FII selling and concerns over rich valuations, among other factors. Moving forward, an important factor that is likely to influence the market is the new IPOs hitting the market this week, according to experts.
S Ranganathan, Head of Research at LKP Securities, said, "Despite the trends in e-way bills pointing towards higher GST collections in October ahead of festive demand, supply constraints in the Automotive Sector kept the street cautious. The GST numbers therefore ignited the Bulls and barring the Oil & Gas Index, most of the sectoral indices registered handsome gains."
IndusInd Bank, Hindalco, Bharti Airtel, HCL Tech and Grasim were the top gainers on the Nifty 50. Only four stocks, UPL, Bajaj Finserv, Mahindra & Mahindra and Nestle India closed in the red among the Nifty 50.
Green, green everywhere
On the sectoral front, all indices closed in green. Realty stocks gained focus with Nifty Realty up 4.03 per cent at closing.
Nifty Metal was up 3.06 per cent while Nifty IT was up 2.56 per cent.
Financials, pharma, healthcare, FMCG and consumer durables also gained. Nifty Bank was up 1.66 per cent. Nifty Private Bank was up 1.86 per cent. Nifty Pharma and Nifty Healthcare Index were up 1.23 per cent and 1.43 per cent, respectively.
Nifty FMCG and Nifty Consumer Durables were up 1.16 per cent and 1.80 per cent, respectively.
Broader indices
Broader indices also closed in the green.
Nifty Midcap 50 was up 1.96 per cent while Nifty Smallcap 50 was up 0.90 per cent. The S&P BSE Midcap was up 1.75 per cent while the S&P BSE Smallcap was up 1.11 per cent.
The volatility index softened 1.09 per cent to 17.24.
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