Sensex, Nifty Scale Higher Ahead Of PM's Address
The Indian equity markets rose higher in the late afternoon session ahead of PM Narendra Modi's address scheduled at 5 pm (at the time of filing this report), the IT and Energy stocks mainly led the advances in the market on Monday, June 7. The BSE Sensex ended the day higher by 228.46 points at 52,328.51, while the Nifty-50 added 81.40 points to close at 15,751.65.
Shares in the Energy sector marked handsome gains with expectations of better demand and pricing with a slowdown in the impact of Covid-19, said experts. Shares of Power Grid Corp and NTPC surged over four per cent each, while Reliance Industries added over a per cent in the day's trade and edged the BSE Sensex higher.
The BSE Midcap and Smallcap surged higher to mark record highs on Monday with both the indices closing higher by 176 and 335 points, respectively. Shares of Mazagon dock and Jay BharatMarut surged 20 per cent in the day's trade in the Smallcap space.
Experts feel that the bullish trend will keep on moving and the broader markets are expected to outperform its benchmark indices. A drop in the daily fresh cases below 1 lakh coupled with the new unlock directions in the economically significant state of Maharashtra and the pace of vaccination will lift the investor sentiment ahead. The Foreign investment in the June series so far has also been a key factor in the rally, experts added.
"Sustained foreign fund inflow also supported the markets. Foreign investors have infused close to Rs 8,000 crore into Indian equities in the first four trading sessions of June as risk-on sentiment improved amid rapidly falling new Covid cases and robust corporate earnings," said Narendra Solanki of Anand Rathi Shares & Stock Brokers.
However, on the flip side, the financial stocks remained the top index losers at the market closing. Shares of Bajaj Finserv and Bajaj Finance slipped 2-4 per cent each in the intraday session, HDFC plunged over a per cent too.
In the overall market breadth, around 2284 shares advanced, 961 shares declined, and 156 shares were unchanged.
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