The Indian stock markets closed higher on Monday, buoyed by strong performances in the IT and banking sectors. The benchmark BSE Sensex surged 591.69 points or 0.73 per cent to close at 81,973.05, while the broader NSE Nifty 50 index climbed 163.70 points or 0.66 per cent to end at 25,127.95.

The market rally was led by IT majors and banking stocks, with Wipro emerging as the top gainer on the NSE, surging 4.24 per cent. Other notable gainers included Tech Mahindra (2.88 per cent), HDFC Life (2.40 per cent), HDFC Bank (2.30 per cent), and L&T (2.02 per cent). On the flip side, ONGC was the biggest loser, dropping 2.05 per cent, followed by Maruti (-1.77 per cent), Tata Steel (-1.48 per cent), Bajaj Finance (-1.26 per cent), and Adani Enterprises (-1.22 per cent).

The market breadth remained positive, with 2,066 stocks advancing and 1,975 declining on the BSE. A total of 249 stocks hit their 52-week highs, while 26 touched their 52-week lows. The market also saw 431 stocks hitting their upper circuit limits and 220 stocks hitting their lower circuit limits.

Among Sensex stocks after market close, the top gainers were Tech Mahindra (2.86 per cent), HDFC Bank (2.32 per cent), L&T (2.02 per cent), ITC (1.72 per cent), and IndusInd Bank (1.70 per cent). The top losers were Maruti (-1.85 per cent), Tata Steel (-1.49 per cent), Bajaj Finance (-1.23 per cent), Axis Bank (-0.68 per cent), and UltraTech Cement (-0.67 per cent).

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, commented on the day’s performance, saying, “Nifty opened with a gap-up and traded with a positive bias throughout the day to close with gains of ~164 points. On the daily charts we can observe that the Nifty has resumed its upmove towards 25500 after a brief three-day consolidation.”

The banking sector showed particular strength, with the Nifty Bank index rising 1.26 per cent to close at 51,816.90. Gedia added, “Bank Nifty broke out of a three-day consolidation on the upside, and is now inching towards 52500, which coincides with the 20-day average.”

Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided insight into the market’s technical outlook, stating, “As long as the index is trading above 25000/81500, the pullback formation is likely to continue. On the higher side, the market could move up till 25200-25260/82300-82500.”

The market’s positive performance was attributed to several factors, including a sharp fall in crude oil prices. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “A sharp fall in crude oil prices provided a major impetus to the markets, as markets ended in positive territory led by gains in banking, IT and realty stocks.”

However, Tapse also cautioned about lingering uncertainties, saying, “The recovery may not fuel strong bullish sentiment, as FIIs deserting Indian markets this month, coupled with the lingering West Asia conflict, has created a lot of uncertainty among investors.”

The broader market indicators also showed strength, with the Nifty Next 50 rising 0.36 per cent to 75,651.70 and the Nifty Midcap Select index gaining 0.91 per cent to close at 13,098.20.

Foreign institutional investors (FIIs) continued to sell heavily in Indian equities, with a net outflow of ₹4,162.66 crore in the capital market segment. Meanwhile, domestic institutional investors (DIIs) acted as net buyers, injecting ₹3,730.87 crore into the market. Among other investor categories, clients showed a net sale of ₹235.83 crore, while non-resident Indians (NRIs) also remained net sellers, offloading ₹13.04 crore worth of equities. However, proprietary investors registered a net buy position of ₹214.14 crore for the day.

Looking ahead, investors are closely monitoring upcoming earnings reports from major companies and macroeconomic data. Vikram Kasat, Head - Advisory at PL Capital - Prabhudas Lilladher, said: “Investors are closely monitoring upcoming earnings reports from major companies, including Reliance Industries, Infosys, and the highly anticipated Hyundai Motor India IPO.”

As the market continues to show resilience, analysts remain cautiously optimistic about its near-term prospects, with technical indicators suggesting potential for further upside movement in the coming sessions.

Published on October 14, 2024