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Business News/ Markets / Stock Markets/  Stock Market Today: Sensex, Nifty rise by a per cent; BSE Midcap, Smallcap hit 52-week highs

Domestic equity benchmarks the Sensex and the Nifty clocked strong gains on the first day of the June futures and options (F&O) series on Friday (May 25) with buying across sectors. The domestic market saw strong gains even though global cues were weak as the US futures were struggling while the European markets were in the red at the time of the closing of the domestic market.

Investors remained hopeful that the US debt ceiling negotiations would soon conclude on a positive note. As Reuters reported, "US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on an agreement that would raise the government's $31.4 trillion debt ceiling for two years while capping spending on most items."

The domestic market has shown remarkable resilience of late thanks to healthy March quarter earnings, sustained foreign capital inflow and a strong macroeconomic outlook.

NSDL data shows foreign portfolio investors (FPIs) have pumped in 36,049 crore in the Indian financial market in May so far.

The Indian economy is expected to have grown 5.5 per cent during the January-March 2023 period despite multiple global headwinds, economists said. The growth is higher than the 4.4 per cent recorded in the preceding quarter.

As per the Ecowrap report by the State Bank of India, India's growth in Q4FY23 is likely to be around 5.5 per cent, which may result in a 7.1 per cent growth of the country for FY23.

Read more: India Q4 GDP data expected next week; economy likely to grow at 5.5% in Q4

Analysts are positive about the Indian market's long-term prospects. Christopher Wood, global head of equities at Jefferies believes that it is only a matter of time before Sensex reaches 100,000 level. He further added that the Indian stock market will continue to climb the proverbial wall of worry.

Read more: ‘Only a matter of time’ Jefferies' Chris Wood on Sensex hitting 1 lakh

After opening 113 points higher at 61,985.36, equity benchmark Sensex remained in the green throughout the session and touched the intraday high of 62,529.83, rising 657 points. The index closed with a gain of 629 points, or 1.02 per cent, at 62,501.69 while the Nifty closed at 18,499.35, up 178 points, or 0.97 per cent.

The BSE Midcap index hit its fresh 52-week high of 26,827.74 during intraday trade, eventually closing at 26,803.15, up 0.82 per cent. The BSE Smallcap index also hit its 52-week high of 30,190.63 before closing 0.49 per cent higher at 30,162.66.

The overall market capitalisation of BSE-listed firms rose to 282.7 lakh crore from 280.3 lakh crore in the previous session, making investors richer by 2.4 lakh crore in a single session.

ITC, Indian Oil Corporation, Godrej Consumer Products, DLF, Bajaj Auto and AU Small Finance Bank were among the 164 stocks that hit their fresh 52-week highs in intraday trade on BSE.

Meanwhile, crude oil prices were trading slightly higher. Brent crude traded near the $77 per barrel mark. The rupee ended 17 paise higher at 82.57 per dollar amid strong gains in the equity market.

Top Nifty Gainers and Losers

As many as 43 stocks ended in the green in the Nifty index, with shares of Reliance Industries (up 2.82 per cent), Sun Pharma (up 2.32 per cent) and Hindalco (up 2.18 per cent) as the top gainers.

On the flip side, shares of ONGC (down 1.20 per cent), Grasim Industries (down 0.96 per cent) and Bajaj Auto (down 0.62 per cent) were the top losers among the seven Nifty stocks that ended in the red.

Top gainers, losers today: RIL, Sun Pharma, Zee, HCL Tech, ONGC; check full list here

All-round buying

The market witnessed across-the-board buying on Friday as all sectoral indices ended with gains on NSE. Nifty Media jumped 2.24 per cent, followed by Nifty IT (up 1.48 per cent) FMCG (up 1.47 per cent) and Realty (up 1.25 per cent).

Nifty FMCG index hit its 52-week high of 50,425.15 in intraday trade before ending 1.47 per cent higher at 50,388.

Nifty PSU Bank, Pharma, Healthcare and Metal indices rose over a per cent each. Nifty Bank, Auto, Private Bank, Financial Services and Consumer Durables rose almost a per cent each.

Read all market-related news here

Experts' Views on Markets

Vinod Nair, Head of Research at Geojit Financial Services observed that despite weak cues from global markets, the domestic market defied the trend and experienced a widespread rally, driven by the strong growth forecast for the Indian economy.

"With the upcoming Q4 GDP data, it is anticipated that India's FY23 GDP will marginally surpass the earlier projected 7 per cent growth rate. Additionally, the expectation of a normal monsoon and consistent FII buying further boosted confidence among domestic investors," said Nair.

Ajit Mishra, VP - Technical Research at Religare Broking pointed out that the tone of the market was positive amid consolidation and now recovery in the US markets combined with improved participation from the IT sector has provided the needed trigger. Besides, a strong surge in heavyweights like Reliance further added to the positivity.

"Since Nifty has decisively crossed 18,400 levels, we are now eyeing 18,700 to be tested shortly. Traders should align their positions accordingly," said Mishra.

Technical Views on Markets

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said the Nifty finally decisively broken out of the sideways consolidation on the upside.

"After two weeks of consolidation, the Nifty has once again resumed its up move. This breakout is likely to be a broad-based rally and we expect participation from all sectors hereon," said Gedia.

"On the upside, we expect the Nifty to target levels of 18,800 which is the 161.82 per cent Fibonacci extension level of the five wave rise (18,060 – 18,420) on the hourly charts. The hourly momentum indicator has a positive crossover, and the daily momentum indicator is on the verge of giving a positive crossover. Thus, both price and momentum indicators suggest that the positive momentum is likely to continue," said Gedia.

Rahul Ghose, Founder & CEO of Hedged, an algorithm-powered advisory platform said the Nifty has now moved its base from the 18,000 level to the 18,150 level. This is the floor of the index now and any corrections up to this level should be looked at as a buying opportunity.

"It is only a matter of time before we see the all-time high levels. Nifty might face some near-term resistance between 18,700 and 18,800 but that would only be a speed-breaker in the scheme of things. The open interest (OI) of the Puts have already started rising in the June month expiry right from the 18,100, 18,200 and 18,300 levels, and the final push will come once you see the 18,500 puts get written," said Ghose.

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 taking any investment decisions.

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Updated: 26 May 2023, 04:35 PM IST
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