Broader indices hit fresh highs; 70 small-caps rise between 10-40%

The broader indices showed mixed performance despite hitting fresh highs during the truncated week ended June 21. The benchmarks also ended with marginal gains amid volatility due to mixed global cues, slow progress of the monsoon, expectation over upcoming Union budget and renewed foreign institutional investor (FII) interest.

The BSE Small-cap index rose 1.5 percent, while Mid-cap and Large-cap indices ended on flat note.

BSE Sensex added 217.13 points or 0.28 percent to end at 77,209.90, while Nifty50 index rose 35.5 points or 0.15 percent to close at 23,501.10.

On June 19, BSE Sensex touched fresh record high of 77851.63, while Nifty50 hits record high of 23,667.10 on June 21.

Among sectors, Nifty Bank index gained more than 3 percent, Nifty Information Technology index up nearly 2 percent, and Nifty Metal index up nearly 1 percent. However, Nifty Auto index slipped 2.5 percent, Nifty FMCG index shed 2 percent, Nifty Oil & Gas and Pharma indices down 2 percent each.

During the week, Foreign institutional investors (FIIs) bought equities worth of Rs 2,030.83 crore, while Domestic Institutional Investors (DII) also bought equities worth Rs 6293.38 crore.

"The Indian market initially continued its upward trend as concerns over election outcomes eased and global sentiment improved. With a coalition government in place, there is optimism that the upcoming budget will strike a balance between growth initiatives and populist measures. Additionally, expectations are high for government actions aimed at stimulating consumption, a critical area to focus on," said Vinod Nair, Head of Research, Geojit Financial Services.

"Strong institutional inflows, including renewed interest from FIIs post-government formation, have further bolstered market sentiment. However, profit booking emerged on concerns about the slow progress of the monsoon. Moreover, heatwaves in northern India remain a key concern," he added.

The BSE Small-cap index rose 1.5 percent with Moschip Technologies, Bhansali Engineering Polymers, Hester Biosciences, C. E. Info Systems (MapmyIndia), Heubach Colorants India, Rashtriya Chemicals and Fertilisers, Punjab Chemicals & Crop Protection, National Fertilizers, Shakti Pumps (India) and Chambal Fertilisers and Chemicals gained 20-40 percent.

On the other hand, Lancer Containers Lines, Som Distilleries and Breweries, Chemplast Sanmar, KNR Constructions, ZF Commercial Vehicle Control Systems India, Kamdhenu Ventures, Garware Hi-Tech Films, PTC Industries lost between 8-11 percent.

Where is Nifty50 headed?

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

The market is likely to remain steady and consolidate at higher levels in the near term. Budget-related sectors are likely to remain in action on the back of news flow and expectation growth focus policy. Sectors like Fertilizer, gaming, and Oil & Gas sectors would react to the outcome of the GST council meeting which is scheduled over the weekend. Globally, investors await US Manufacturing & Service PMI data along with US Existing Homes Sales.

Amol Athawale, VP-Technical Research, Kotak Securities

We are of the view that, as long as the market is trading below 23650/77500 the weak sentiment is likely to continue on the lower side market could retest the level of 23300/76700. Further downside may also continue which could drag the market till 23175/76100. On the other side, 23650/77500 would be the immediate breakout level for the bulls. Post breakout market could move up till 23800-24000/78000-78500.

For Bank Nifty now, 51000 would be the sacrosanct support zone for the trend following traders. Above the same, it could rally till 52700-53000. On the flip side, below 51000 traders may prefer to exit out from the trading long positions.

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