Metal Stocks Aid Recovery As Global Concerns Cool-off
The Indian stock market on Wednesday recovered after witnessing huge selling pressure recently. The Metal index led the gains for the stock market, combined with the cooling crude oil prices and US treasury yields.
The NSE Nifty 50 index opened with a gain of 0.10 per cent at 19,301, while the S&P BSE Sensex gained 0.09 per cent at 65,631.
Except Nifty IT, Pharma and Reality, all the sectoral indices traded in the green zone, whereas Nifty PSU Banks and Nifty Metals led the gains.
Among Nifty gainers, Hindalco traded with the gain of more than 3 per cent followed by metals stocks, Tata steel and JSW steel. As for the losers, HDFC life, Infosys and Cipla lost more than 1.5 per cent.
“The short-term direction of Nifty hinged on updates from the Middle East and US inflation data. Some relief was found in sluggish oil prices and steady US yields, although market volatility was expected to persist, driven by the expiration of F&O October derivative contracts and substantial foreign institutional investor (FII) selling in excess of Rs. 15,000 crores this October,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Meanwhile, the more domestically influenced mid-caps and small-cap indices which were under huge selling pressure on Monday recovered with Midcap gaining 0.28 per cent while small cap recovered 1.06 per cent.
A key support level to monitor is at 19,200. If the Nifty breaches this level, it could potentially lead to a more significant market correction. On the flip side, 19,600 is expected to act as a resistance level, indicating potential hurdles for any upward movements, said Mandar Bhojane, Research Analyst, Choice Broking.
Sugar equities such as Balrampur Chini Mills, Shree Renuka Sugar, and Dhampur Sugar rose between 2 per cent and 4 per cent, supported by a 12-year high in global sugar prices due to low supply.
Among individual stocks, Delta Corp rose 8 per cent after the court ordered goods and services tax (GST) intelligence not to issue final rulings on tax notifications against the casino operator without first seeking permission from the court.
KPI Green Energy rose 3 per cent after bagging a fresh order to carry out a wind-solar hybrid power plant.
The SME IPO, Arvind listed with massive gains of 77 per cent against the issue price of Rs 45. The IPO was opened for public subscription on 12 October to raise Rs 14.74 crore.
Investors are eagerly waiting for the Q2 results from big names including Axis Bank, Tech Mahindra, Indus Towers, Jubilant Food Works, Rallis India, and Sonata Software.
