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Taking Stock | Sensex up 934 points, Nifty above 15,600; mid, smallcaps also gain

On the BSE, all sectoral indices ended in positive territory led by oil & gas (up 6 percent) and power, realty, IT and metal indices up 3 percent each

June 21, 2022 / 04:56 PM IST

Indian equity benchmark extended gains for the second day on June 21, lifted by buying across sectors, especially in metals and IT names, and falling commodity prices.

At close, the Sensex was up 934.23 points, or 1.81 percent, at 52,532.07, while the Nifty added 288.65 points, or, 1.9 percent to close at 15,638.80, their best performance in three weeks.

"Absence of fresh selling triggers in the domestic and global economy along with falling commodity prices relieved the heavily discounted equity market to showcase recovery," said Vinod Nair, Head of Research at Geojit Financial Services.

The recovery indicates that the uncertainty over inflation and monetary policy tightening has been factored in, however, with the market in a highly sensitive state, even the slightest inconvenience can trigger volatility, he added.

Titan Company, Hindalco Industries, JSW Steel, Coal India and Adani Ports were among the top Nifty gainers.

Close

All the sectoral indices ended in the green, with Nifty auto, IT, energy, metal, pharma and PSU bank rising 2-4 percent.

Also Read: Sensex spikes over 1,000 points: Four factors behind the market rally

Stock and sectors

IndexPricesChangeChange%
Sensex58,817.29-35.78 -0.06%
Nifty 5017,534.759.65 +0.06%
Nifty Bank38,287.8550.45 +0.13%
Nifty 50 17,534.75 9.65 (0.06%)
Wed, Aug 10, 2022
Biggest GainerPricesChangeChange%
Hindalco440.1018.70 +4.44%
Biggest LoserPricesChangeChange%
Bajaj Finance7,149.40-192.80 -2.63%
Best SectorPricesChangeChange%
Nifty Metal5759.6091.60 +1.62%
Worst SectorPricesChangeChange%
Nifty IT29701.15-266.55 -0.89%

On the BSE, all sectoral indices ended higher led by oil & gas (up 6 percent) and power, realty, IT and metal indices up 3 percent each.

Broader indices outperformed the benchmarks. The BSE midcap index jumped 2.4 percent and smallcap index added 3 percent.

A short build-up was seen in RBL Bank, Indiabulls Housing and GNFC, while long build-up was seen in Indiamart Intermesh, Multi Commodity Exchange of India and SBI Cards.

Among individual stocks, a volume spike of more than 100 percent was seen in Delta Corp, IDFC First Bank and IDFC.

More than 100 stocks hit their 52-week low on the BSE. These included BPCL, NCC, Vivimed Labs, IDFC First Bank, JK Cement, V-Mart Retail and Jaiprakash Associates.

Outlook for June 22

Ajit Mishra, VP- Research, Religare Broking

All the sectors participated in the rally, wherein media, PSU banks and metals gained the most.

This move has certainly eased some pressure but sustainability is the key. Participants are keenly eyeing the US Fed chair’s speech for cues and are tracking the progress of the monsoon.

A decisive move above 15,700 in the Nifty can take it to the 16,000 or decline will resume. Stocks, on the other hand, are offering opportunities on both sides, so traders should plan accordingly.

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

The markets witnessed the much-needed relief rally after posting the worst weekly losses in two years. Positive global cues, a fall in crude oil prices and short covering in the derivatives segment drove the market.

Value buying in beaten-down sectors also helped the market gain some momentum. Globally, equity markets continue to worry about the expected aggressive rate hikes by central banks to curb record inflation and its impact on economic growth.

On the positive side, crude prices have corrected almost 10 percent from its recent peak, providing some breather to the market s India meets 80 percent of its energy needs through imports.

While the overall market set up continues to be “sell on rise”, intermittent bouts of relief rally can’t be ruled out. Given the hawkish commentaries from central banks and record-high inflation, the rate hike cycle is likely to continue over the next couple of months and keep markets jittery.

Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities

With no negative cues, the benchmark indices gained for the second straight day. Metal, state-owned banks and technology stocks saw bargain hunting after suffering heavy losses in the week gone by.

On daily charts, the Nifty has formed a promising bullish candle, which supports a further uptrend but the medium-term trend is still on the weak side.

For the traders, the support has shifted to 15,500 from 15,250 on the Nifty and from 51,300 to 52,000 on BSE. As long as the Nifty traded above 15,500, its chances of hitting 15,750 are bright. A further upside could take the index to 15,850.

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.
Rakesh Patil
first published: Jun 21, 2022 04:56 pm
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