Stocks Finish At Fresh Highs On Wednesday; Led By Energy, IT Shares
The 30-share BSE benchmark Sensex advanced 358 points or 0.52 per cent to settle at 69,654. The broader NSE Nifty advanced 97 points or 0.47 per cent to end at 21,040. Meanwhile, the market capitalisation of all listed companies on BSE increased by Rs 2.56 lakh crore to Rs 349.02 lakh crore.
Among Sensex stocks, Wipro, ITC, TCS and L&T were the top gainers, rising 2-4 per cent. Tata Motors, Nestle India, Infosys, M&M, and Reliance also ended in the green. On the other hand, NTPC, Axis Bank, ICICI Bank, UltraTech Cement and Maruti closed with cuts.
Adani Group stocks also closed up to 20 per cent higher. Adani Total Gas closed in a 20 per cent upper circuit, while Adani Green Energy ended nearly 17 per cent higher. Adani Energy Solutions, Adani Power, Adani Wilmar and NDTV closed with 4-7 per cent gains. Whereas Adani Enterprises, ACC, and Ambuja Cement closed 1.5-2.5 per cent lower.
Sector-wise, Nifty Media surged 2.1 per cent and Nifty IT gained 1.7 per cent. Nifty Bank, Financial, Pharma and Realty closed lower. In the broader market, Nifty Midcap100 gained 0.25 per cent, while Smallcap100 surged 0.4 per cent. The market breadth was skewed in favour of the bulls. About 1,877 stocks gained, 1,887 declined and 131 remained unchanged on the BSE.
FII and FPIs, on Wednesday, saw net sales of Rs 79.88 crore in the cash segment. A total of Rs 11,916.30 crore was sold against a total purchase of Rs 11,836.42 crore. Domestic institutional investors saw a net purchase of Rs 1,372.18 crore in the cash segment. A total of Rs 10,951.00 crore was sold against a total purchase of Rs 12,323.18 crore.
Meanwhile, in Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in both US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions.
A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector. Despite a promising outlook, short-term profit booking may occur due to domestic premium valuation concerns. Further, lingering El Nino risks, a drop in reservoir levels, and reduced sowing may hold RBI to profoundly upgrade H2FY24 growth and reduce future inflation estimates.
Technically, the important key resistances placed in October Nifty future are at 21,040 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 21,188 – 21,303 levels. Immediate support is placed at 21,003 – 20,808 levels.
