The Indian market bounced back on September 1 after falling more than 2 percent in the previous session, supported by a rally in telecom, healthcare, and metals.
The S&P BSE Sensex rose 272 points to 38,900 while the Nifty50 reclaimed the crucial 11,400 level to end the day 82 points higher at 11,470.
The market bounced back despite India reporting weaker-than-expected GDP data for the June quarter but the factory activity showed an uptick in August, the first time in five months. Auto sales in the month gone by also triggered recovery hopes.
Global cues, too, helped the bulls to reclaim momentum.
"Indian markets exhibited heightened volatility today following the publishing of GDP data and SC ruling in the AGR case for telecom companies. Global cues were positive following Chinese factory data, which indicated demand increasing," Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
Liquidity, driven by high FII inflows in August, provided good support to markets, in spite of general concern regarding high valuations in some sectors and stocks, he said.
“The market is expecting a slow uptick in economic activity which has resulted in stock-specific moves, where there is earnings visibility. Investors need to be prepared to handle volatility in the near term," he said.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 84,556.40 | 130.06 | +0.15% |
| Nifty 50 | 25,891.40 | 22.80 | +0.09% |
| Nifty Bank | 58,078.05 | 70.85 | +0.12% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Infosys | 1,528.50 | 56.10 | +3.81% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Eternal | 328.35 | -9.75 | -2.88% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 36078.70 | 778.90 | +2.21% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Infra | 9413.85 | -51.95 | -0.55% |
Sectorally, action was seen in telecom, metals, power, healthcare, and capital goods space while profit-taking was visible in IT, and the oil & gas space.
The broader markets also ended in the green. The S&P BSE midcap index rose 1.1 percent while the smallcap index gained 0.5 percent.
Top Nifty gainers included Hindalco, JSW Steel and Bharti Airtel.
Top Nifty losers included Axis Bank, ONGC and Bharti Infratel.
Stocks & Sectors
Sectorally, the S&P BSE Telecom index gained 3.8 percent followed by the metal index that was up 3.3 percent and the power index closed with gains of 2.5 percent.
Profit-taking was seen in the S&P BSE IT index that was down 0.9 percent and the oil & gas index closed with losses of 0.4 percent.
A volume spike of more than 100% was seen in stocks like Bharti Infratel, Escorts and Bank of Baroda.
Long buildup was seen in stocks like Ashok Leyland, Jindal Steel and PVR.
Short buildup was seen in stocks like MGL, ITC, Voltas.
Nearly 100 stocks, including IndiaMART InterMESH, L&T Infotech and Adani Green, on the BSE hit a fresh 52-week high.
Stocks in news
Telecom stocks ended mixed on September 1 after the Supreme Court gave mobile service providers 10 years to pay the adjusted gross revenue (AGR) dues to the government. Bharti Airtel rallied almost 7 percent and Reliance Communications gained 4, whereas Vodafone Idea plunged 13 percent.
Adani Power stock jumped 4 percent after the Supreme Court allowed the company to recover compensatory tariff from Rajasthan discoms.
Escorts share price gained almost 3 percent after the company reported strong auto sales in August. It reported an 80 percent growth in tractor sales during the month compared to July.
Biocon stock price jumped over 7 percent after the company announced the launch of a diabetes drug in the US market.
NTPC share gained over 3 percent after the company said it would seek shareholders' nod to raise up to Rs 15,000 crore through issuance of bonds. The company's annual general meeting is to be held in October.
Technical View
The Nifty formed a Long Legged Doji pattern on the daily charts.
It is critical that the Nifty sustains above 11,325 levels for the next couple of sessions to retain bullish bias as bounces in the near term may remain vulnerable for a sell-off, experts say.
If 11,325 is breached on a closing basis, then it will signal the resumption of the downswing with initial targets placed around 11,100 levels.
“Any pullback attempt into the zone of 11550–11, 600 shall be encountered with selling pressure. Hence, traders are advised to make use of rallies to short this market with a stop above 11,700 on a closing basis,” Mazhar Mohammad of Chartviewindia.in told Moneycontrol.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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