Foreign portfolio investors bought equities worth Rs 7,498.29 crore on Tuesday, NSE data showed.
Led by gains in banking and financial stocks, headline equity indices ended higher for the sixth straight day on Wednesday. However, some profit booking towards the fag-end of the trading session trimmed the gains. Firm global cues, ease in lockdown measures, continuous inflows of foreign funds and encouraging commentary by Prime Minister Narendra Modi about Indian economy kept the momentum upbeat on Dalal Street.
Experts on Dalal Street believe even though the short-term outlook is positive, the market is likely to take a breather and see some consolidation before moving ahead.
"Markets are currently riding on the global buoyancy but the profit-taking in the last hour and scheduled weekly expiry indicate the possibility of a pause on Thursday i.e. June 4. The benchmark may take a breather and see some consolidation before the further surge. Meanwhile, there’ll be no shortage of opportunity on the stock-specific front so plan your trades accordingly," said Ajit Mishra, VP - Research, Religare Broking.
The benchmark BSE Sensex advanced 284 points or 0.84 per cent to settle at 34,109 with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, HDFC and Mahindra and Mahindra contributing the most to index’s gain.
Mahindra and Mahindra was the top index gainer, with a jump of over 5 per cent. It was followed by Bajaj Finance (up 3.17 per cent) and Kotak Mahindra Bank (up 3.15 per cent).
Sensex winners & losers (Source: bseindia.in)
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The 50-share Nifty settled 82 points or 0.83 per cent higher at 10,061. The index settled above the crucial 10,000-mark for the first time since March 11.
Sahaj Agrawal, Head of Research-Derivatives, Kotak Securities, “In a short span of time the index has rallied from 9,000 to 10,000-odd levels on the back of broader investor participation. We believe short term trend remains positive but buying is advisable only on meaningful dips. Banking stocks are expected to remain in action while Pharma stocks may remain under pressure in the near term.”
Overall, the market breadth remained in favour of the bulls as 1,661 stocks ended the day in the green on the BSE, while 860 stocks settled in the red. However, 138 stocks were unchanged.
The broader market continued to rally with BSE Midcap and BSE Smallcap indices rising 0.31 per cent and 1.24 per cent, respectively.
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Barring BSE Telecom index (down 0.95 per cent), Power (down 0.85 per cent), TECk (down 0.56 per cent) and IT (down 0.42 per cent), other sectoral indices on the exchange ended higher.
The BSE Realty, Bankex, Capital Goods, Oil & Gas and Consumer Durables advanced between 1-3 per cent.
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In a scrip specific development, Britannia Industries gained nearly 2 per cent after the company posted a 26.53 per cent growth in consolidated net profit for March 2020 quarter.
InterGlobe Aviation gained 8 per cent amid positive sentiments about the future trajectory of the company.
Foreign portfolio investors bought equities worth Rs 7,498.29 crore on Tuesday, NSE data showed.
On the global front, European markets were trading higher as strong data from China’s services sector fuelled investors’ hopes that the global economy will stage a strong recovery from the coronavirus crisis, according to Reuters. Asian peers Hang Seng, Nikkei and Shanghai also gained up to 1.30 per cent.
MARKET AT A GLANCE
Headline indices extend gain for sixth straight session
Sensex up 284 points or 0.84% at 34,109
Nifty gains 82.45 points or 0.83% at 10,061
18 Sensex stocks close higher; M&M top Sensex gainer, up 5%
Kotak Bank, Bajaj Finance, SBI gain over 2 per cent each
Bulls rule the charts, advance-decline ratio at 2:1
Broad-based rally; BSE Midcap index up 0.31%, BSE Smallcap 1.24%
BSE Realty, Bankex and Capital Goods indices gain over 1% each
Telecom, Power, TECk, IT, Utilities settle in the red
Godrej Properties up 9%, Oberoi Realty 6.74%, IB Real Estate 4.97% top gainers in Realty index
Asian shares rise as Wall Street gains for 3rd straight day
Adani Power appoints merchant banker to evaluate delisting proposal
WHO MOVED MY MARKET
Firm global markets
Asian peers Hang Seng, Nikkei and Shanghai closed in the green on optimism over economies reopening from shutdowns to stem the coronavirus pandemic. European markets were also traded in the green in the early trade. The composite index of purchasing managers (PMI) of 19 countries of the Eurozone in May rose to 31.9 after falling to 13.6 a month earlier. On Wednesday, investors also expect that the German government will announce the second package of measures to support the economy with a volume of 100 billion Euro.
FII inflows
Some buying by institutional investors for the past few days also kept the momentum high in the domestic equity market. In the latest update, FIIs bought shares worth Rs 7498 crore on Tuesday, according to NSE data.
Rising Covid-19 cases
India registered a record jump of 8,909 novel coronavirus cases in the last 24 hours, taking the tally to 2,07,615 on Wednesday, while the toll rose to 5,815 with 217 more deaths, the Health Ministry said.
WHAT TO WATCH OUT FOR?
Technically the Nifty looks tired after rising for 6th straight sessions and looks set for a correction, said Deepak Jasani, Head Retail Research, HDFC Securities.
Pace of rising coronavirus cases will also be keenly watched.
Investors will also keep an eye on civil unrest in the USA.
