Sensex scales 82,200 for first time since Mideast war began, Nifty above 25,350. More gains ahead?

The Indian stock market extended sharp gains, with Sensex crossing 82,200 for the first time since the Middle East conflict began in late February this year, and Nifty crossing 25,350.

Sensex gained over 300 points to rise a little over 82,200 while Nifty 50 jumped nearly 100 points to trade above the 25,350 level. The sharp gains added more than Rs 3 lakh crore to the total market capitalisation of all companies listed on BSE.

The market is extending sharp gains for the 10th consecutive day, excluding the short one-hour Muhurat Trading session on Sunday that is typically marked by low volumes. Sensex has surged more than 7,700 points or 10% in November so far. Sensex had briefly crossed 82,200 on Wednesday, but failed to hold on to the gains by the end of the session.


Bajaj Finance, Bajaj Finserv and Eternal shares gained around 2% each to lead gains on Sensex, while ITC, BEL, SBI, ICICI Bank and Adani Ports shares gained more than 1% each. Bucking the trend, M&M, HUL, Bharti Airtel and UltraTech Cement shares fell around 1% each.

Broader markets also extended gains, with Nifty Smallcap 250 index rising more than 1% and Nifty Midcap 100 index rising nearly 1%. India VIX, which measures volatility in the market, dropped around 2% to 17.21.

Among the sectors, Nifty Realty jumped around 2% while Nifty Financial Services and Nifty Consumer Durables gained more than 1% each to lead gains. Nifty IT, Nifty Pharma and few other indices however slipped into the red. The overall market breadth remained strongly positive, with NSE seeing 2,277 advances against 835 declines, while 97 stocks remained unchanged.

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What lies ahead for Dalal Street?

Nifty’s rally of around 10% in seven trading sessions so far in November is being led primarily by the aggressive buying by the FIIs, said V K Vijayakumar, Chief Investment Strategist, Geojit Investments. He noted that the tug of war between the FIIs and DIIs till November saw the FIIs on the sell side and DIIs on the buy side. Now the positions have been completely reversed with FIIs turning aggressive buyers and DIIs turning consistent sellers. This FIIs vs DIIs position will set the market trend in the near-term, according to the analyst.

FIIs have already invested Rs 65,735 crores in Indian equities so far in November. This trend is likely to continue and has the potential to reach an all-time high number, Vijayakumar said. “Impressive earnings growth as evidenced by the good Q2 results and the macro relief from lower crude prices (Brent around $92) will support the rally. DIIs may continue profit booking, putting brakes on the rally,” he said.

Technical view on Nifty

Nifty’s pullback from intraday highs yesterday cannot be seen as a mean reversion move that investors had feared, said Anand James, Chief Market Strategist at Geojit Investments.

While the analyst waits for a slippage past yesterday’s reaction low of 25,096 to look at the prospects of 24,840 or even 24,400, he advised investors to expect continued push higher aiming at 25,560 initially.

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Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.