Market Bounces Back After A Sharp Correction
In the Nifty 50 index, 36 stocks advance in the positive territory, while 14 stocks end in the red territory
The Indian stock market ended with significant gain in the Monday trading session. The reduction in geo-political tension and fall in crude oil prices triggered buying in the first trading session of the week.
The National Stock Exchange (NSE) Nifty 50 index 0.65 per cent higher at 24,339, while the S&P Bombay Stock Exchange (BSE) Sensex also settled 602 points or 0.76 per cent higher at 80,005 levels on the closing bell.
Nifty Moves
In the Nifty 50 index, 36 stocks advanced in the positive territory, while 14 stocks ended in the red territory.
Among the winners Shriram Finance topped the index with 5.39 per cent gain followed by more than nearly 4 per cent gain in Adani Enterprises. ICICI Bank, Eicher Motors, Wipro, Adani Ports, JSW Steel, Tata Steel, Sunpharma, M&M and Hindalco gained more than 2 per cent.
Among the laggards, Coal India plummeted 4.22 per cent and Bajaj Auto lost 1.91 per cent. Axis Bank and Kotak Mahindra Bank lost more than 1 per cent.
Analyst Note
“Amid higher valuation concerns, markets had corrected sharply last week and hence the recovery was seen today. Also, short covering ahead of the monthly expiry this week triggered a rally in domestic markets, although the undertone remains cautious,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
"The market exhibited a rebound after continuous selloff last week. Positive results from banks and a slump in oil prices in expectation of an ease in retaliations in the Middle East aided investor sentiment. Stability in the broad-based rally requires more evidence from earnings, which are currently in the doldrums of weak demand and margin pressure. We expect companies with a less leveraged balance sheet and growth prospects to outperform when the market stabilises," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectoral Movement
In terms of sectoral performance, Nifty Bank and Financial Services ended with 0.93 per cent and 0.54 per cent gain respectively, while PSU Banks also soared nearly 4 per cent higher.
Other sectoral indices also ended in green with Realty and Pharma gaining more than 1 per cent followed by decent gains in IT, FMCG and Auto. Metals surged 2.54 per cent, whereas Nifty Media ended almost 2 per cent higher.
The more domestically focussed indices, Mid-cap and Small-cap gained 0.83 per cent and 1.2 per cent respectively.
