Market wrap: Sensex, Nifty hit record highs on gains led by Infosys, RIL; mid, smallcaps underperform
Stock market today: Sensex finally closed 205 points, or 0.31 per cent, higher at 66,795.14 while the Nifty closed the day at 19,749.25, up 38 points, or 0.19 per cent.
Equity benchmarks the Sensex and the Nifty extended their winning streak into the fifth consecutive session, settling at their fresh closing peaks on Tuesday (July 18) amid positive global cues while the dollar traded near its one-year low level.
“World shares were steady near their recent 15-month highs and the dollar held close to a one-year low on Tuesday as investors paused to take stock of weak economic data from China and waited for US retail sales data and earnings,” reported Reuters.
The US retail sales and industrial production data is expected later today which could influence the Federal Reserve's monetary policy stance.
The US Fed, European Central Bank and Bank of Japan will hold their policy meetings next week.
Stock market today
Sensex witnessed volatility during the session amid bouts of profit booking at higher levels. Experts are positive about the market for the medium to long term but they expect some consolidation in the short term because of the market's rich valuation.
Sensex topped the 67,000 mark for the first time, hitting its fresh record high of 67,007.02 in intraday trade. The Nifty50 also hit its fresh high of 19,819.45 during the session.
Sensex finally closed 205 points, or 0.31 per cent, higher at 66,795.14 while the Nifty closed the day at 19,749.25, up 38 points, or 0.19 per cent.
Infosys remained the top contributor stock to the gains in the Sensex index, followed by Reliance Industries, ICICI Bank and Asian Paints.
On the flip side, SBI, Bajaj Finance, Titan and HDFC Bank ended as the top drags on the index.
Mid and smallcaps underperformed the benchmark, settling lower. The BSE Midcap index closed 0.18 per cent lower at 29,423.02 while the Smallcap index ended with a cut of 0.47 per cent at 33,828.59. The BSE Smallcap index erased all gains to end lower after hitting its fresh record high of 34,163.42 during the session.
Over 200 stocks, including Reliance Industries, ICICI Bank, Colgate Palmolive India, Ashok Leyland, Apollo Hospitals and United Spirits, hit their fresh 52-week highs in intraday trade on BSE.
Crude oil prices rose amid expectations of a possible tightening of US crude supplies. However, concerns over weak demand after weaker-than-expected Chinese economic growth data kept oil prices capped.
Brent Crude traded half a per cent higher near the $79 per barrel mark around 4 pm.
Top Nifty Gainers and Losers
Shares of Infosys (up 3.73 per cent), Asian Paints (up 1.56 per cent) and HCL Tech (up 1 per cent) ended as the top gainers in the Nifty index.
On the flip side, shares of LTIMindtree (down 2.63 per cent), HDFC Life Insurance Company (down 1.54 per cent) and SBI (down 1.43 per cent) ended as the top losers in the index.
As many as 29 stocks ended lower in the Nifty pack against 21 stocks that gained.
Sectoral Indices Today
Most sectoral indices ended with losses today. Nifty Media (down 1.84 per cent) and PSU Bank (down 1.23 per cent) ended as the top losers among the sectoral indices.
Nifty Bank ended with a mild loss of 0.09 per cent.
However, Nifty IT bucked the trend and rose 1.06 per cent. Nifty Oil & Gas ended with mild gains of 0.17 per cent.
Experts' Views on Markets
Shrikant Chouhan, Head of Research (Retail) at Kotak Securities pointed out that the market is flush with FII inflows, which is the major driving force behind the rally in benchmark indices.
"While the market may be in an overbought zone, the undertone remains bullish due to India's strong economic performance and hopes that the US rate hike cycle could be nearing the end on the back of moderating inflation," said Chouhan.
Vinod Nair, Head of Research at Geojit Financial Services underscored that the bulls continued to lift the market to new heights, but volatility emerged in the second half due to concerns over valuation.
"Rapid fall in the dollar index and a slide in the US 10-year yield is supporting liquidity in emerging markets. While disappointing economic growth in China and improvement in the US market outlook are drawing attention to the Indian market with the IT sector as the contra bet," said Nair.
Technical Views on Markets
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said on the daily charts, the Nifty has been rising after breaking out of the range of 19,300 – 19,600.
"It is rising along the expanding upper Bollinger band indicating that the positive momentum is likely to continue. Considering the sharp runup there can be consolidation, however, the overall trend is positive, and in case a dip occurs it should be bought into," said Gedia.
"On the upside, the short-term target is placed at 19,900. In terms of levels, 19,630 – 19,580 should act as a crucial support zone while 19,880 – 19,900 should act as an immediate hurdle level," said Gedia.
Chouhan of Kotak Securities said intraday correction formation is indicating that a rangebound activity is likely to continue in the near future.
"For Nifty, 19,700 could be the key support level for day traders, below which a quick intraday correction to 19,650-19,600 is possible. As long as the index is trading above 19,700, the uptrend wave is likely to continue and the index could rally to 19,825-19,875,” said Chouhan.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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