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Business News/ Markets / Stock Markets/  Markets gain for 4th day in a row; Nifty crosses 18600-mark

NEW DELHI : Market momentum remained positive for the fourth day in a row. Nifty with gains of 0.19%, closed above the 18600-mark at 18633.85. The Sensex, too, with gains of 0.2% ended at 62969.13, closer to the all-time high of 63583.07 seen on 1 December 2022.

Sectoral performance remained a mixed bag with metals stocks seeing significant profit booking. The auto, realty, pharma & healthcare, consumer durables and oil & gas stocks also remained under some pressure. The Bank Nifty nevertheless rose to fresh highs and buying was seen in FMCG and IT stocks. ITC led the gains amongst Nifty 50, followed by HDFC Life, Bajaj FinServ, Kotak Bank and Bajaj Finance.

“Due to absence of cues from the US markets which were shut on Monday, local stocks witnessed cautious optimism with selective buying in banking and IT stocks. Investors are also awaiting the US debt agreement deal on Wednesday, as its outcome would determine the market direction in the near to medium term," said Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities Ltd said.

The foreign portfolio investors (FPI) remaining buyers support the markets and on Tuesday FPI bought a provisional of 2,085.62 crore. The domestic institutions, however, resorted to profit booking.

The rupee closed weaker by about 9 paisa, at 82.71 to a dollar. The same was attributed to the weakness in the Chinese currency and demand for dollars from oil marketing companies. However, suspected central bank intervention and rally in equities capped the downside, said Anindya Banerjee, VP - Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd. Over this week, the US jobs report will be in focus, and Banerjee expects a range of 82.40 and 82.85 on the spot for the rupee.

Moving forward in the near term, the market is expected to take cues from its global peers and macro data to be released during the week, Siddhartha Khemka, head - Retail Research, Motilal Oswal Financial Services Ltd, said. In addition, investors would watch for India’s GDP number, which will be released on Wednesday.

Nifty is showing strength and is inching up gradually toward its lifetime-high levels. Bank Nifty has already crossed its previous highs and is providing much-needed support to the market. Even midcap index is at an all-time high and Khemka expects action in the broader market to continue for some time.

Markets are gradually inching towards the record high however mixed global cues are capping the momentum, said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd. “We feel the scenario may continue and that may keep the traders guessing on the sustainability of the trend. Having said that, traders should maintain a positive tone till Nifty holds 18,250 and proactively manage their positions," said Mishra.

Also with the rise the Nifty valuations too may provide some resistance. The result reason is ending and the markets are factoring major positives.

“The underlying market momentum indicates an uptrend that can take the market higher. But investors need not expect a sustained sharp rally since valuations don’t warrant that and profit booking will exert selling pressure" said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

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Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Updated: 31 May 2023, 12:18 PM IST
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