IT, Metals Drive Stocks After Fresh Stimulus Support By China & Rising Expectations From Fed
The 30-share BSE benchmark Sensex advanced 241 points or 0.37 per cent to settle at 65,628. The broader NSE Nifty Future advanced 102.25 points or 0.52 per cent to end at 19,614. From the Sensex pack, Wipro, HCL Tech, UltraTech Cement, and Tata Steel were the top gainers, rising 3.7 to 4.3 per cent. NTPC, Tech Mahindra, and Infosys also closed with gains. On the other hand, M&M, Axis Bank, ITC, Nestle and Asian Paints closed with cuts.
Meanwhile, RVNL shares closed nearly 12 per cent higher after the firm bagged orders worth Rs 604.19 crore from the Madhya Gujarat Vij Company. The more domestically focused small-caps and mid-caps gained 1.33 and 0.98 per cent, respectively. Whereas sector-wise, Nifty Metal advanced 2.28 per cent, Nifty PSU Bank rose 2.43 per cent and Nifty IT gained 2.06 per cent.
Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 2.66 lakh crore to Rs 315.04 lakh crore. The market breadth was skewed in the favour of the bulls. About 2,297 stocks gained, 1,462 declined and 182 remained unchanged on the BSE.
FII and FPIs, on Monday, saw a net purchase of Rs 487.94 crore in the cash segment. A total of Rs 14,731.67 crore was sold against a total purchase of Rs 15,219.61 crore. Domestic institutional investors saw a net purchase of Rs 2294.93 crore in the cash segment. A total of Rs 8593.86 crore was sold against a total purchase of Rs.10,888.79 crore.
Meanwhile, Meanwhile, Recent release of domestic macroeconomic data has portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment.
Technically, the important key resistances placed in August Nifty future are at 19,614 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19,676 – 19,707 levels. Immediate support is placed at 19,570 – 19,474 levels.
