Indian stock market carried forward their Friday momentum on Monday but the gains were on the back of a resounding win by the Bharatiya Janata Party (BJP)-led Mahayuti alliance in Maharashtra assembly election.
It was a broad-based rally spanning all sectors, but bank stocks stood out. While the S&P BSE Sensex settled at 80,109.85, up by 993 points or 1.25%, the broader Nifty closed at 24,221.90, higher by 315 points or 1.32%. In just two sessions, the Sensex has gained nearly 3,000 points.
The market capitalisation of all BSE-listed companies surged by over 6 lakh crore to Rs 439.86 lakh crore.
Top Gainers & Losers
The market breadth remained highly skewed in favour of the bulls as 43 stocks in the Nifty index closed in the green while the remaining 7 ended in the red. The top gainers were ONGC, Larsen & Toubro (L&T), Bharat Electronics (BEL), Bharat Petroleum Corporation (BPCL) and Shriram Finance while the top losers were JSW Steel, Tech Mahindra, Infosys, Maruti Suzuki and Bajaj Auto.
All 16 Nifty sectoral indices ended in the green with Nifty PSU Bank occupying the top spot. Its gains were over 4% followed by Nifty Oil & Gas which jumped nearly 3%. Nifty Bank and Nifty Realty closed with gains of more than 2%.
Stocks in focus
PSU stocks were in focus on Monday as both the Nifty CPSE index and BSE PSU index finished with a nearly 3% uptick. Stocks like SJVN, ONGC, NBCC and Cochin Shipyard settled with over 5% gains.
Expert Views
Commenting on the day's movement, Dr Praveen Dwarakanath, Vice- President of Hedged.in, said while Nifty further gapped up with the positive boost due to the results of state election, the bulls faced immediate resistance at 24,350 levels. "It has formed a doji candle for the day, indicating uncertainty in the rally. Unless Nifty closes above the 24,350 level sustainably, one should continue to hold the view of selling on the rise in the index," he said.
“The momentum indicators on the weekly chart are rising from the oversold region, indicating a possible upside towards the immediate resistance at the 24,350 levels. Options writer's data for the monthly expiry showed an increase in the put writing at the 24,300 level and below while a short covering of calls below the 24,100 level, indicating a further upside in the index," Dwarakanath said.
Global Markets
Market action in Asia was mixed. Among major Asian indices, Singapore's FTSE Straits Times Index fell 0.39% while Japan's Nikkei 225 closed with gains of 1.30%. Hong Kong's Hang Seng index was among the biggest losers falling by 0.41% while China's Shanghai Composite settled 0.11% lower.
Meanwhile, European markets were trading with strength around 4 pm India time on Monday. UK's FTSE 100 gained by 0.33% while Gemany's Dax, French CAC 40 and Stoxx 600 were higher by 0.41%, 0.28% and 0.18%, respectively. Spain's IBEX gained by 0.74%.
Currency Watch
The Indian rupee logged its strongest one-day gain since June on Monday, aided by dollar inflows related to the rebalancing of MSCI's global equity indexes, alongside softness in the dollar and lower US bond yields. The rupee closed at 84.2875 against the US dollar, up 0.2% from its previous close, its biggest single-day gain since June 3. The currency rose to 84.2550 during the session, its highest since November 7.
The dollar index and treasury yields on Monday kicked off Asia trading on the back foot as markets reacted to US President-elect Donald Trump's nomination of investor Scott Bessent for the post of treasury secretary. Bessent, who has spent his career in finance, is seen as a comforting choice for markets and expected to keep a steady hand on government finances.
The dollar index was last quoted at 106.8, down 0.5% from its closing level on Friday. US Treasury yields were lower with the 10-year yield down 7 basis points at 4.34%.
"It looks like geopolitics and the diverging US-eurozone macro story will keep the dollar bid into year-end after all," ING Bank said in a note, pegging the dollar index in a 106.5-107.5 range for the week.
Crude Impact
Crude oil prices were trading lower on Thursday. The US WTI oil contracts trading at $70.82, down by $0.42 or 0.59% while Brent oil futures were hovering near $74.81, down by $0.36 or 0.48%.
Higher crude oil prices do not augur well for the equity markets, fuelling inflation fears.
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