Market Wrap: Nifty tops 20,000, closes near all-time high; investors richer by over ₹3 lakh crore in a day
Stock market today: Nifty hit its fresh record high of 20,008.15 in intraday trade on Monday. Nifty's last all-time high was 19,991.85 which it hit on July 20 this year. Thus, it scaled a fresh peak in 36 sessions.
Frontline indices the Sensex and the Nifty ended with significant gains on Monday, with the Nifty hitting a fresh record high during the session and the Sensex reclaiming the 67,000 mark on all-round buying.
Crossing the coveted 20,000 mark for the first time, Nifty hit its fresh record high of 20,008.15 in intraday trade on Monday. Nifty's last all-time high was 19,991.85 which it hit on July 20 this year. Thus, it scaled a fresh peak in 36 sessions.
Sensex hit its all-time high of 67,619.17 on July 20 this year and at present, it is 492 points away from this level.
Experts expected the Nifty to hit a new high as sentiment was upbeat after the G20 summit.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services is of the view that the acceptance of the G20 Delhi Declaration has given a boost to market sentiment as it underscored India's growing diplomatic might.
"The G20 Delhi Declaration and India’s diplomatic triumph can trigger a continuation of the positive market mood and momentum. More importantly, the inclusion of the African Union in G20 and the proposed India-Middle East-Europe Corridor have positive economic and market connotations. For instance, the inclusion of the African Union in G20 is positive news for Bharti Airtel which has a significant presence in Africa," Vijayakumar pointed out.
Broadly positive global cues also supported sentiment. “Global shares edged up on Monday thanks in part to a burst of risk appetite, with the yen jumping by the most against the dollar in two months after the head of the Bank of Japan hinted at an eventual shift away from negative interest rates,” reported Reuters.
Stock market today
Nifty opened at 19,890 against the previous close of 19,819.95 and rose almost a per cent to hit its fresh record high of 20,008.15 during the session. The index settled at its record closing high of 19,996.35, with a gain of 176 points, or 0.89 per cent.
The Sensex opened at 66,807.73 against the previous close of 66,598.91 and rose 0.9 per cent to hit its intraday high of 67,172.13. Sensex closed the day 528 points, or 0.79 per cent, higher at 67,127.08.
Both the Sensex and the Nifty extended their winning streak into the seventh consecutive session. In September so far, they have gained almost 4 per cent.
BSE Midcap and Smallcap indices continued their record-setting spree. The BSE Midcap index closed 1.20 per cent higher at 33,064.96 after hitting its fresh record high of 33,084.79 during the session. The BSE Smallcap index closed 0.70 per cent higher at 38,533.40 after hitting its fresh record high of 38,603.18 during the session.
The overall market capitalisation of the firms listed on BSE rose to nearly ₹324.3 lakh crore against ₹320.9 lakh crore in the previous session, making investors richer by nearly ₹3.4 lakh crore in a single session.
As many as 370 stocks, including Axis Bank, HCL Tech, Maruti Suzuki, NTPC, Titan and Wipro, hit their fresh 52-week highs in intraday trade on BSE.
Top Nifty gainers and losers today
Only four stocks - Coal India (down 1.15 per cent), Bajaj Finance (down 0.28 per cent), ONGC (down 0.27 per cent) and Larsen & Toubro (down 0.18 per cent) - ended in the red in the Nifty index today.
Shares of Adani Ports jumped 7.10 per cent, ending as the top gainer in the index. They were followed by the shares of Adani Enterprises (up 3.68 per cent) and Axis Bank (up 2.32 per cent).
Read more: Top gainers, losers today: Axis Bank, Power Grid, Adani Ports, L&T, among most active stocks
Sectoral indices today
Barring Nifty Media (down 0.33 per cent), all sectoral indices ended in the green on Monday. Nifty PSU Bank index jumped 3.13 per cent, followed by Nifty Metal (up 1.81 per cent) and Nifty Auto (up 1.69 per cent). Nifty Bank closed with a healthy gain of 0.92 per cent at 45,570.70.
Experts' views on markets
"The domestic markets began the day on a positive note, bolstered by the historic consensus achieved at the G20 summit, which instilled confidence among investors. Higher-than-expected loan growth data and strong profitability along with lower NPA in PSU banks attracted investor interest. Additionally, expectations of easing inflation, driven by a decline in vegetable prices, fueled optimistic sentiment, leading to a market rally. The return of China from deflation, growth in new bank loans, and reduced concerns about US rate hikes have paved the way for the domestic markets to reach new all-time highs," said Vinod Nair, Head of Research at Geojit Financial Services.
“India's resilient growth compared to global macroeconomic headwinds has given investors the confidence to maintain bullish bets and propelled benchmark Nifty past the 20K mark. The 7th consecutive session of gains has come despite persisting selling by foreign institutional investors and other vagaries like inflation, rising dollar, spiking US treasury yields and interest rate hike concerns. While the undertone appears bullish, the market seems to be in an overbought position and hence caution may prevail going ahead," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Technical views on Nifty
Chouhan said on daily charts, Nifty formed a bullish candle and on intraday charts it has been consistently forming a higher high and higher low series formation, which is largely positive.
"For the trend-following traders, 19,935 could act as a key support level, above which the index could move up to 20,100-20,175. On the flip side, below 19,935, traders may prefer to exit from long positions and below the same, we could see one quick intraday correction to 19,850-19,825,” said Chouhan.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said momentum indicators on the daily and hourly timeframe are in sync with the price action. Thus, we can expect the positive momentum to continue.
"On the upside, we expect Nifty to target levels of 21,000 from a short-term perspective. In terms of levels, 19,865 – 19,810 is the crucial support zone while 20,200 – 20,250 should act as an immediate hurdle zone," said Gedia.
Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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