Smallcap index zooms 2.7%, midcaps jump 1.6%; Sensex, Nifty hold gains after hitting new highs

Broader markets outperform benchmark indices

BSE Sensex and NSE Nifty 50 held gains in the afternoon after hitting record highs on April 1, while broader markets outperformed, with the Nifty Smallcap 250 index zooming as much as 2.7 percent, and the Nifty Midcap 150 index rising 1.6 percent.

The gains in Sensex and Nifty were led by financial services and metal stocks, and firm global markets. Moderation in a key US inflation reading also aided investor sentiment.

Investors await multiple events such as the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting from April 3-5 and company updates for the Jan-Mar quarter ahead of the result season, foreign capital inflow, crude oil prices, amid other global cues.

"The RBI monetary policy meet scheduled for April 3 to 5 is likely to keep rates unchanged and, therefore, is unlikely to impact the market," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

At 14:46 hrs IST, the Sensex was up 298.21 points or 0.40 percent at 73,949.56, and the Nifty was up 118.60 points or 0.53 percent at 22,445.50. About 2951 shares advanced, 545 shares declined, and 100 shares unchanged.

Sectoral Trend

All sectoral indices were in the positive territory with Nifty Realty, Nifty Media, and Nifty Metal seeing the most gains. While Nifty Realty was up over 4 percent, Nifty Media and Nifty Metal were up by nearly 3 percent each.

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Fundamental View

"While markets may witness wild fluctuations due to valuations of benchmark indices being in an expensive zone, the undertone still remains bullish as investors are willing to bet big on equity assets for the next financial year too," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Tapse said that while the focus will shift to full-year earnings, sectors like banking and IT companies will be in focus going ahead. "Although corrections at every interval will provide investors an opportunity to revisit mid & small-cap stocks, large-cap stocks could attract more attention going ahead," he said.

Technical View

"...we would need to get above 22,350-22,410 to nurture hopes towards a 22,700-23,000 push. On the downside, we have ample supports near 22,200 as well as 22,050, which could ensure that we may not see a collapse per se.  That said, the real risk is that of momentum staying away from either sides, for at least this week," said Anand James, Chief Market Strategist, Geojit Financial Services.

Key Nifty gainers

JSW Steel, Tata Steel, Shriram Finance, Adani Ports

Key Nifty losers

Titan Co, Nestle, LTIMindtree, Bharti Airtel

Key Sensex gainers

JSW Steel, Tata Steel, L&T, NTPC

Key Sensex losers

Titan Co, Nestle, Bharti Airtel, Tech Mahindra

Stock moves

Globus Spirits: Globus jumped around 11 percent after the company informed that it has commenced commercial production of additional capacity at two of its existing units at Singhbhum in Jharkhand, and at Burdwan in West Bengal.

GM Breweries: Firm's shares jumped 12 percent after the company's board said it will consider a proposal for issuing bonus shares in its April 4 meeting.

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