Flagship indices the Sensex and the Nifty logged healthy gains on July 13, supported by gains in index heavyweights such as ICICI Bank, HDFC twins and Reliance Industries.
The Indian equity benchmarks rose in line with major global peers as better-than-expected Chinese export data boosted sentiment even as investors awaited the US inflation prints for further cues about the market.
BSE Sensex closed 397 points, or 0.76 percent, higher at 52,769.73 while the Nifty ended with a gain of 120 points, or 0.76 percent, at 15,812.35.
However, mid and small-caps failed to mirror the gains of front-line stocks. BSE Midcap index closed just 2 points higher at 22,906.58 while the smallcap index settled 120 points, or 0.46 percent, up at 26,188.45. The smallcap index hit its all-time high of 26,263.03 in intraday trade today.
"Following favourable economic outcomes and positive Asian markets, domestic bourses traded positive today. Asian shares sparked a rally after better-than-expected Chinese economic data and a bounce back in Chinese tech stocks," said Vinod Nair, Head of Research, Geojit Financial Services.
Though June CPI inflation continued to remain above RBI’s tolerance level, it eased to 6.26 percent from 6.30 percent in the previous month giving some relief to the market. Industrial production (IIP) for May grew 29.3 percent year-on-year (YoY), essentially due to a lower base, Nair pointed out.
"Global cues are upbeat, however, support from the banking pack is critical for any sustainable up-move in the Nifty index. Besides, participants will also be eyeing the results of the IT major, Infosys Ltd, scheduled on July 14," said Ajit Mishra, VP-Research, Religare Broking.
"Amid all, we feel it’s prudent to maintain focus on the selection of stocks and managing overnight risk until we see the resumption of the uptrend."
Sectors and stocks
Among the sectors, barring IT, teck and FMCG, all ended in the green with banking and financial indices rising over a percent each. Metal, oil & gas, realty, auto, energy and basic materials rose about half a percent each.
More than 500 stocks, including Bajaj Finserv, NTPC, UltraTech Cement, ACC, Bharat Forge, Indiabulls Real Estate, Grasim Industries, Kitex Garments and SML Isuzu, hit their 52-week high on BSE.
Over 500 stocks, such as Jain Irrigation Systems, Kitex Garments, Rane Brake Lining, Goodluck India, Ruchi Soya, Venus Remedies, Nahar Spinning Mills and Indo Tech Transformers, hit their upper circuits on BSE.
Technical view
Nifty formed a bullish candle on the daily scale with a long lower shadow, indicating declines were being bought.
It has been moving between 15,632 and 15,915 for the last 15 trading sessions and requires a decisive range breakout to commence the next leg of the rally, Chandan Taparia, Vice President and Derivatives Analyst, Motilal Oswal Financial Services pointed out.
"Now, it has to hold above 15,800 to witness an up-move towards 15,915 and 16,000 while on the downside, support exists at 15,750 and 15,600," said Taparia.
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