Nifty 50 records biggest intraday jump in nearly 2 months: RIL contributes 37% to index's overall rally

The Indian market kicked off the Interim Budget week on a high note, primarily influenced by Reliance Industries. RIL shares experienced a 7% surge, reaching an all-time high of ₹2,896 per share. This marked the most significant intraday gain for Reliance Industries since September 2020. With this surge, the market capitalisation of the company surpassed ₹19 lakh crore, settling at ₹19.60 lakh crore.

The Nifty 50 surged by 1.80% to reach 21,737 points in today's trade. This was the index's biggest intraday jump since December 4, 2023. The S&P BSE Sensex also jumped 1.76% to 71,941 points.

It is worth noting that Reliance Industries shares have experienced a 5% increase on eight occasions over the last five years. The most significant intraday surge within this timeframe occurred on April 7, 2020, with a jump of 11.94%, followed by another notable increase of 10.20% on April 22, 2020.

Also Read: Stock market today: Nifty 50, Sensex jump almost 2% each on all-round buying; investors earn nearly ₹6 lakh crore

Reliance Industries' robust performance contributed 142 points to the Nifty 50's total gain of 385 points today, accounting for 37% of the overall rally. Following closely were banking heavyweights such as HDFC Bank, Kotak Mahindra Bank, ICICI Bank, and Axis Bank, collectively contributing 82.57 points to the day's overall index surge.

Overall, 38 constituents of the index, or 76%, finished today's trade with gains, with Oil and Natural Gas Corporation standing at the top with a gain of nearly 8% at ₹252.50 apiece, followed by RIL. The surge in both ONGC and RIL shares can be attributed to the significant uptick in crude oil prices, driven by escalating tensions in the Red Sea.

Additionally, Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation (IOC) also registered gains ranging between 2% and 5% in today's trade.

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The crisis in the Red Sea shipping route began after Yemen-based Houthi rebels launched frequent attacks on commercial shipping vessels plying through the route in November as a fallout of the Israeli-Palestine war, which started in early October 2023.

The Red Sea shipping route accounted for 50% of the country's exports and 30% of imports last fiscal year, PTI reported.

Meanwhile, on the flip side, Cipla stock stood as the top loser in today's trade with a drop of 2.4%, followed by ITC, LTIMindtree, and Infosys, all falling up to 1.3%.

Among sectoral indices, Nifty Oil and Gas jumped 5.18%, followed closely by Nifty PSU Bank (up 2.43%), Nifty Consumer Durable (up 1.72%), Nifty Auto (1.68%), Nifty Metal (1.61%), and Nifty Bank (up 1.28%).

Also Read: Sensex, Nifty surge almost 2%: From gains in RIL, HDFC Bank to strong global cues, 4 key factors driving the rally

Commenting on today's market performance, Vinod Nair, Head of Research at Geojit Financial Services, said," The domestic market underwent an upturn as the recent selloff and positive Asian peers provided an opportunity to accumulate quality stocks. Despite premium valuations, confidence is upheld among investors due to the optimistic environment surrounding the interim budget and the recent set of results aligning with forecasts."

"Globally, the upcoming FED policy stands out as a crucial factor. While a rate cut by the FOMC is unlikely, investors will eagerly monitor their commentary to get cues on future rate paths," he added.

Nifty 50 projections after today's robust rally

Rupak De, Senior Technical Analyst, LKP Securities, said, "The Nifty has surged above the dual resistances of 21500 and 21700. It successfully reclaimed the 20-day moving average (20DMA) after a few days of struggle. Furthermore, the recent upward movement has propelled the index above the critical moving average, indicating a positive trend for the short term. On the higher end, it is poised to potentially reach levels around 22100–22150. The support level is positioned at 21550."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.