At 3:1, advances-declines ratio indicates broad-based buying
The market rebounded sharply on Thursday with benchmark indices closing over half a per cent higher. Equities, after opening on a positive note, rallied further in the second half on sustained buying in PSU banks and financial stocks.
The BSE Sensex closed at 52,300.47, up 358.83 points or 0.69 per cent. It hit an intra-day high of 52,346.35 and a low of 51,957.92. The Nifty 50 closed above 15,700 at 15,737.75, up 102.40 points or 0.65 per cent. It touched an intra-day high of 15,751.25 and a low of 15,648.50.
Green all around
The breadth of the market remained positive with 2,456 stocks advancing, 727 declining and 150 remaining unchanged on the BSE. As many as 621 securities hit the upper circuit and 126 the lower circuit; 467 hit their 52-week high, while 26 touched a 52-week low.
Binod Modi, Head, Strategy at Reliance Securities said, “Domestic equities rebounded sharply today as clarity over the vaccination ramp-up and government’s positive indication towards reviving a higher capex programme lifted sentiments. Further, positive cues from Asian markets also supported the markets.”
Bajaj Finance, Bajaj Finserv, State Bank of India, Divi’s Lab and IndusInd Bank were the top gainers on the Nifty 50, while Bajaj Auto, Eicher Motors, UPL, Adani Ports and Shree Cements were the top laggards.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, During the afternoon session markets maintained their upward momentum with gains in energy, healthcare and realty stocks. Healthy buying was observed in blue-chip stocks suc h as Bajaj Finance, Reliance Industries and Tech Mahindra.”
Vinod Nair, Head of Research at Geojit Financial Services, said, "Ahead of US inflation data and the European Central Bank policy meeting outcome, Indian equities reflected its Asian counterparts to trade on a positive note.”
“With faster vaccine coverage and off-loading of fiscal measures, the economic impact of the Covid second wave will most likely be restricted to Q1FY22, the monthly report of the Department of Economic Affairs said. Gains in the market were broad-based, in all major sectors except auto," said Nair.
Auto under pressure
On the sectoral front, automobile stocks remained under pressure, while realty, financials and pharma stocks gained. The Nifty Auto was down 0.11 per cent at closing.
Nifty Realty was up 3.34 per cent. The Nifty PSU Bank was up 2.40 per cent. Nifty Bank and Nifty Financial Services were up 0.95 per cent and 1.21 per cent, respectively. Nifty Pharma was up 1.38 per cent.
Mid, small-caps outperform
All the broader indices closed in the green. Mid-cap and small-cap stocks continued to witness significant buying activity.
The Nifty Midcap 50 was up 1.60 per cent, while the Nifty Smallcap 50 was up 1.70 per cent. The S&P BSE Midcap was up 1.26 per cent, while the S&P BSE Smallcap was up 1.73 per cent. Notably, the volatility index also rose 1.69 per cent to 15.
“Investors lapped up mid-cap and small-cap stocks as improved earnings visibility and a widened valuations gap started attracting investors towards mid-caps and small-caps,” said Modi.