Sensex Gains 395 Points, RIL, Banking Stocks Contribute

The BSE Sensex closed higher with a jump of 395.33 points at 52,880. The 30-share kitty witnessed advances in 25 shares with shares of Reliance, Tata Steel, Bajaj Finance, SBI, HDFC Bank, and ICICI Bank advancing over a per cent each.

Similarly, the Nifty-50 index advanced 112.15 points to end the day's session at 15,834.35. Moving ahead, approaching the Q1 earnings session, brokerages see an upside in the Nifty-50 index and expect the index to reach 16,100 in the coming weeks.

In all, the banks and metal stocks lifted the BSE Sensex and Nifty-50 on Monday, July 5. After going under correction in the previous week, the markets have rebounded on the hopes of better economic stability given the reopening of several states and expectations from a long earning session that lies ahead, said experts.

"We expect the index to gradually resolve above the upper band of consolidation and eventually head towards 16100 in coming weeks as we approach Q1FY22 earnings season," said ICICI Direct in their report.

Among the sectors, the Metal, Private Banks, and Financials mostly led the rally in the markets on Monday, while the IT and Pharma sectors ended red. The Nifty Metal index gained over a per cent led by advances in shares of Hindustan Copper(+4.90 per cent), Vedanta(+3.97 per cent), Hindalco (+3.59 per cent), and MOIL(+3.46 per cent).

However, on the flipside, stocks in the IT and Pharma space saw selling pressure. Among others, Tech Mahindra (-1.35 per cent) and Dr. Reddy's Labs(-0.68 per cent) ended among the top index losers.

In the overall market breadth on Monday, 2174 shares advanced, 1086 shares declined, and 162 shares were unchanged.

Primary Market Action: India Pesticides Listing
Tracking the primary market action on Monday, the agrochemical company, India Pesticides made a stellar debut on the bourses with a premium of over 21 per cent at Rs 368 against its issue price of Rs 296/share. The company was already tagged as a preferred stock to be subscribed for the long term by brokerages and experts.

The IPO of India Pesticides was subscribed 29 times given the company's strong future outlook defined by strong financials, fast-growing agrochemical space, and diversified product portfolio.
Sneha Poddar, AVP, Research, Broking & Distribution at MOFSL, said, "We like IPL given its presence in fast-growing agrochemical space, diversified product portfolio and robust financials. Expanding product portfolio, growing customer base and increasing wallet share of existing customers can help IPL maintain its growth momentum."

The Global agrochemicals market is expected to grow at 7 per cent CAGR to USD86bn by 2024 and the company is well placed to tap this opportunity, Poddar added.