Sensex in Green; Auto Stocks in Focus
Sensex and Nifty raced to scale new highs in the morning deals and closed flat with positive bias. The Sensex index closed higher by 30 points at 60,100 and the Nifty-50 index settled at 17,900, up 10 points.
Shares of Reliance Industries contributed much in the Sensex index today as the stock price surged to record a new lifetime high of Rs 2,529.90. The company also became the first Indian company to have a market capitalisation of Rs 17 lakh crore. Maruti Suzuki and M&M were other top gainers of the index as the stocks advanced over six and four per cent, respectively.
However, on the flipside, shares in the IT pack declined throughout the day after a sustained rally in the previous week which helped the markets to scale historic levels. HCL Tech and Tech Mahindra were the top losers in the index as they declined over four and three per cent, respectively. Tracking the overall performance sector-wise, Nifty IT declined over two per cent, while on the flipside, Nifty Auto jumped over three per cent and Banks, Energy and Realty gained more than a per cent each.
The Auto space was in buzz as the sector awaits numbers for month of September later this week. Experts feel that the sector is expected to post better sales numbers as the demand has shot up significantly with the reopening of economic activities in the country. However, the semiconductor chip shortage issue will still remain on the cards, experts added.
Vinod Nair, Head of Research at Geojit Financial Services, said, "The sentiments in the auto sector were lifted on expectation of better sales numbers for September."
Moving further, the markets are expected to stay bullish from a long term perspective, however, experts feel a short term correction cannot be ruled out after a huge rally that we have witnessed. The buy on dips strategy will continue to be in play for investors and any correction will further lead the markets to new records.
"Strong base is formed near 17,800-17,740 zone and holding above said levels we may see northward movement to be continue. Also any dip around said levels can use as to add fresh longs with keeping stop out level below 17,700 zone," said Rohit Singre, Senior Technical Analyst at LKP Securities.
Overall in the markets today, 1592 shares advanced, 1682 shares declined, and 176 shares were unchanged.
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