NEW DELHI: Improvement in the health of US President Donald Trump boosted sentiments on Dalal Street as it alleviated the uncertainty over leadership in Washington. A favourable court judgment in the US on work visa and gains in Asian markets also helped benchmark indices register a third straight day of gains on Monday.
However, indices pared nearly half of all gains as fundamental problems with the economy still persist. India continues to report a high number of Covid-19 cases and the economy is yet to come out of shambles.
The 30-share pack Sensex rose 276.65 points or 0.71 per cent to 38,973.70 but closed nearly 300 points off its day’s high. Its broader peer NSE Nifty climbed 86.40 points or 0.76 per cent to settle at 11,503.35. IT heavyweights TCS and Infosys contributed almost all of the total gains logged by the indices.
“Indian indices had a very positive start taking cues from the global market and in anticipation of the Supreme Court verdict of the compounding of loans during the moratorium period. Gains came off when the decision was deferred to next week. This delay is unlikely to change the framework for small borrowers,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- TCS becomes second 10-lakh-crore company; shares surge over 7%
- IT stocks rally as US court blocks work visa ban; Nifty IT jumps over 3%
- Angel Broking erodes investor money at debut, lists at 10% discount
- IPO Watch: Likhitha Infra issue subscribed over 9x
- Vedanta starts delisting process; stock ends flat
- Chemcon Chemicals falls further 10%, down 28% from list price
- India VIX surges nearly 8%, reflecting traders’ expectation of heightened volatility
Navneet Munot, Chief Investment Officer of SBI Mutual Fund, meanwhile, said India can’t make do with a 5 per cent growth ‘as the new normal’ and must do everything to achieve above 7 per cent expansion in the medium term in order to be able to deal with the socio-economic problems.
Among bluechip names, TCS was the biggest gainer amid buzz over buyback plans. The stock rose 7.55 per cent to a record high of Rs 2,712.95. Wipro, Tata Steel, Sun Pharma, JSW Steel and Hindalco were among other major gainers, up 3-7 per cent.
On the other hand, Bajaj Finserv was the biggest loser, down 2.79 per cent to Rs 5,885. It was followed by Shree Cements, Bharti Airtel, Bajaj Finance, GAIL and Bajaj Auto that closed with cuts of 1-3 per cent.
Top 5 Nifty gainers & losers
Broader market indices were mixed and underperformed their headline peers. Nifty Smallcap closed up 0.59 per cent while Nifty Midcap settled 0.10 per cent lower. Nifty 500, the broadest index on NSE, advanced 0.58 per cent.
Adani Enterprises, Rajesh Exports, APL, TV18 Broadcast, Century Plyboards and Trident were among the top gainers from small and midcap indices, registering gains in the range of 5-10 per cent.
Conversely, Ipca Laboratories, Page Industries, REC, Just Dial, Affle India and Birla Corporation were among the major losers from broader market space, closing down in the range of 3-5 per cent.
“In the near-term, the market is expected to maintain its optimism based on Trump’s recovery, development of stimulus in the US and upcoming Q2FY21 results in India.”
In the sectoral space, Nifty IT was the biggest gainer, up 3.47 per cent, followed by Nifty Metal that rose 2.55 per cent. Nifty Pharma gained 1.7 per cent. Meanewhile, Nifty PSU Bank, Nifty Media and Nifty Auto were among those that closed in the red.
Market breadth was in the favour of the gainers with 1,491 stocks ending in the green while 1,229 names settled with cuts. As many as 141 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 68 names hit 52-week lows, mostly from the microcap space. About 345 stocks hit upper circuit limit and 225 lower circuit limit.
Markets world over were in the green. London’ FTSE rose 0.73 per cent, Paris’ CAC 0.72 per cent and Frankfurt’s DAX 0.66 per cent in the afternoon trade. In Asia, all markets closed in the green. Hong Kong was the biggest gainer, up 1.32 per cent, followed closely by South Korea and Japan. Market in China was closed for trading.
Let’s prepare for tomorrow:
- PMI data: Markit Services PMI data for September will be released on Tuesday, which will be tracked by investors.
- Trump’s health: Donald Trump is expected to be discharged from hospital later in the day, which if delayed, may negatively impact the market.
- US stimulus: Marketmen will also track the development on stimulus packages to be announced by US lawmakers.