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Wednesday, June 16, 2021

Sensex gains 185 points on strong macroeconomic data; Nifty near 11,550

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NEW DELHI: Thanks to buying in the last hour of the trading session, domestic equity indices extended gains to the second day on Wednesday buoyed by strong factory output data for the US and India. Though, the court hearing on interest rate waiving and border tensions with China led to volatility in the market.

India’s factory activity grew for the first time in five months with indicators such as power and fuel demand, railway freight and mobility indices also showing improvement. The US also reported strong manufacturing activity data.

The 30 share pack Sensex reclaimed 39,000 level as it rose 185 points or 0.48 per cent to 39,086, led by gains in Reliance Industries and IT stocks. Its broader peer NSE Nifty advanced 65 points or 0.56 per cent to 11,535. India VIX slipped further 4 per cent to 20.93 ahead of the weekly expiry on Thursday.

Market at a glance:

  • Voda Idea surges 11.5% ahead of board meet to consider raising funds
  • Nifty Media biggest gainer on low-level buying; ZEE spikes 7%
  • Nifty PSU Bank drops for 3rd day in a row; Nifty Bank up for 2nd day
  • Auto names rise on bettering sales; Escorts surges 10%
  • Broader indices extend rally to 2nd day; Nifty Smallcap up 2%
  • 90 stocks at 52-week highs: Adani Green, Escorts, IndiaMart, Infibeam and Jubilant Food among top names

Investors will now look forward to more data on the pace of economic recovery. They will also track the development of the second tranche of US stimulus that will likely infuse more liquidity in the system.

“After initially trading with uncertainty, the markets gained strength, in sync with positive global cues. European and Asian markets gained from encouraging economic data which could be assumed as an indicator towards an economic recovery in most of the major economies,” said Vinod Nair, Head of Research at Geojit Financial Services.

“With markets reacting to stock-specific news and with heightened volatility, investors are advised to remain alert, trade cautiously and keep booking profits.”

Among the bluechip names, Zee Entertainment was the top gainer, up 7.46 per cent at Rs 216.85. M&M, Tata Motors, Bharti Infratel, Adani Ports, PowerGrid and Tata Steel were among other major gainers, rising 2-7 per cent.

Bajaj Auto was the top Nifty loser, down 2.38 per cent to Rs 2,888 after it posted a 9 per cent fall in August sales figures. Hero Moto, Asian Paints, HDFC, Nestle India and Sun Pharma were among other losers, down in the range of 1-2 per cent.

Nifty snip 2xAgencies

Top 5 Nifty gainers & losers (Source: NSE)

Broader market indices extended their rally to the second day thanks to outperformance by some of the constituents. Nifty Smallcap rose 1.72 per cent while Nifty Midcap added 1.49 per cent. Nifty500 was up 0.81 per cent.

Escorts, Aditya Birla Fashions, Adani Gas Energy, Gujarat Narmada Valley Fertilisers, GMM Pfaudler and CSB Bank were top gainers in the broader market space, surging in the range of 7-10 per cent.

On the other hand, Future Retail, Crompton Greaves, Max Financials, Kalpataru Power, Metropolis Healthcare and KEI Electronics were the top losers, down up to 10 per cent.

Among sectoral indices, Nifty Media was the top gainer, up 3.42 per cent followed by Nifty Metal, Nifty IT and Nifty Auto that rose over a per cent each. Nifty Financial Services ended with a minor cut while Nifty PSU Bank slipped 0.42 per cent.

Market breadth was in favour of the gainers with 1,628 stocks ending in the green while 1,051 names closed with cuts. As many as 90 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 39 names hit 52-week lows, mostly from the microcap space. About 255 stocks hit the upper circuit and 314 lower circuit limit.

Globally, European stocks were trading with big gains despite troubling economic indicators in the region like Eurozone retail inflation and German retail sales. FTSE, CAC and DAX were up in the range of 1.7-2.5 per cent. Japan Nikkei, South Korea’s Kospi and Thailand’s Set Composite closed with gains while Hong Kong’s Hang Seng and China’s Shanghai Composite registered losses.

Let’s prepare for tomorrow:

  • F&O: Weekly derivative contracts will expire on Thursday
  • PMI data: The Street will also watch out for Markit Services PMI for August to see if there has been improvement in demand.
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