The benchmarks 30-stock Sensex and broad-based Nifty snapped their three-day losing streak to trade higher on January 19 morning as upbeat global cues ushered positive sentiment. Investors used the recent fall to buy quality stocks at lower prices, further supporting the market.
At 11.31 am, the Sensex was up 446.02 points, or 0.63 percent, at 71,632.88, and the Nifty was up 132.30 points, or 0.62 percent, at 21,594.60. Gainers heavily outnumbered laggards with around three stocks rising for one that fell.
The broader market mirrored the benchmarks, as small and midcap indices. too, traded with gains.
Sectoral trends
Most frontline banking stocks staged a recovery, with ICICI Bank and Axis Bank trading in the green. This also lifted the Nifty Bank index nearly a percent higher after the recent sharp correction.
All other sectors also traded in the green. Among them, metal, power, oil and gas, infra, PSU banks and capital goods were the top gainers, running around a percent higher. Information technology, FMCG and realty also recorded decent gains.
Fundamental view
An important trend that has implications for retail investors is the revival of the tug-of-war between foreign and domestic investors. In the last two days, FPIs sold massively.
"This is partly in response to the rising bond yields in the US where the 10-year yield has risen to 4.16 percent and partly due to the high valuation in the Indian stock market," said K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Investors should remember that in recent years, DIIs always won in the medium to long-term even though FII selling can cause short-term pain. "FII selling due to external factors has always been opportunities to buy," he added.
Technical view
"Indications are now in favour of some consolidation after the recent fall and for the Nifty, any rebound towards 21,700-21,850 would attract fresh shorts," said Ajit Mishra, SVP-Technical Research, Religare Broking.
On the downside, Mishra sees a critical support for the headline index at 21,200. "We thus reiterate our view to reduce positions on the rise and wait for some stability in the trend," Mishra said.
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Key Nifty gainers
Bharti Airtel, ICICI Bank, Axis Bank, NTPC, ONGC
Key Nifty losers
IndusInd Bank, Reliance, Divi's Lab, Sun Pharma, HCLTech
Key Sensex gainers
Bharti Airtel, ICICI Bank, Axis Bank
Key Sensex losers
HCLTech, IndusInd Bank, Reliance
Stock moves
Metro Brands: The stock crashed 6 percent after the company released a weak set of numbers for Q3. Net profit declined 12.6 percent year-on-year to Rs 98.78 crore for the December quarter of FY24. It reported a revenue of Rs 635.50 crore, up 6.14 percent from Rs 598.7 crore in the year-ago period.
Shoppers Stop: Shares slumped 5 percent after the company posted a sharp decline in its third quarter net profit. The company's net profit fell 41.2 percent on year to Rs 36.70 crore. The fall was more severe due to a high base of the previous year, which included reversal of interest on GST worth Rs 17 crore. Revenue for the quarter grew nearly 9 percent to Rs 1,237.5 crore, up from Rs 1,137.1 crore in the year-ago period.
Home First Finance Company: The stock soared nearly 8 percent to a 52-week high after it posted strong growth in its Q3 net profit and assets under management (AUMs). The NBFC's net profit surged 34.2 percent on-year to Rs 79 crore which, driven by higher assignment income and lower credit cost, brokerage firm Morgan Stanley said. AUM recorded a growth of 33.5 percent to Rs 9,014 crore, with housing loans contributing to 86 percent of the company's total assets under management.
Also Read | Nifty, Sensex gain on strong global cues, analysts advise caution
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