Stock Market Today: Sensex, Nifty rise on positive global cues; mid, smallcaps hit fresh 52-week highs
Sensex closed 345 points, or 0.55 per cent, higher at 62,846.38 while the Nifty ended at 18,598.65, up 99 points, or 0.54 per cent.
Positive global cues underpinned domestic market sentiment as the benchmarks the Sensex and the Nifty ended in positive territory on Monday (May 29), extending gains into the third consecutive session.
US stock futures and European markets were in the green when the domestic market closed as investors cheered the tentative US debt ceiling deal.
"Congressional Republican McCarthy and the US President Joe Biden agreed on Saturday to avert an economically destabilising default by suspending the $31.4 trillion debt ceiling until 2025. The deal now has to clear a narrowly divided Congress before the United States runs out of money to pay its debts in early June," reported Reuters.
Sensex opened 300 points higher at 62,801.54 and rose 524 points to hit the intraday high of 63,026. The 30-share index closed 345 points, or 0.55 per cent, higher at 62,846.38 while the Nifty ended at 18,598.65, up 99 points, or 0.54 per cent.
Sensex is now just 737 points away from its all-time high of 63583.07 and Nifty is 289 points away from its all-time high of 18,887.60.
The BSE Midcap index hit its fresh 52-week high of 26,944.05 before ending 0.41 per cent higher at 26,912.35. The BSE Smallcap index also hit its fresh 52-week high of 30,328.85 in intraday trade before closing the day with a gain of 0.30 per cent at 30,253.33.
The overall market capitalisation of BSE-listed firms rose to ₹283.8 lakh crore from ₹282.7 lakh crore in the previous session, making investors richer by ₹1.1 lakh crore in a day.
As many as 181 stocks, including ITC, Lupin, IndusInd Bank, Indian Oil Corporation, Titan, TVS Motor Company, ABB India, AU Small Finance Bank, CG Power and Industrial Solutions, Cummins India, DLF, Godrej Consumer Products, IDFC First Bank, InterGlobe Aviation (IndiGo) and Syngene International, hit their 52-week highs in intraday trade on BSE.
Meanwhile, crude oil prices traded slightly volatile as optimism over the US debt ceiling deal was offset by concerns over a possible rate hike by the US Fed in June. Brent Crude traded near the $77 per barrel mark.
The rupee slipped 6 paise to close at 82.63 per dollar, Bloomberg data showed.
Top Nifty Gainers and Losers
Some 34 stocks ended in the green in the Nifty index, with shares of Mahindra and Mahindra (up 3.37 per cent), Titan (up 2.62 per cent) and Coal India (up 1.86 per cent) as the top gainers.
On the other hand, 16 stocks ended in the red in the Nifty index, with shares of ONGC (down 2.90 per cent), Divi's Labs (down 1.14 per cent) and Power Grid (down 1.01 per cent) as the top losers.
Bank, Private Bank, Auto, and FMCG indices hit 52-week highs
Barring Nifty Oil & Gas (down 0.54 per cent) and IT (down 0.39 per cent), all sectoral indices ended with gains.
Nifty Bank index hit a fresh 52-week high of 44,483.35, before settling with a gain of 0.67 per cent at 44,311.90. Nifty Private Bank also hit its fresh 52-week high of 22,561.80, before ending 0.41 per cent higher at 22,452.45.
Nifty Auto index hit its 52-week high of 14,315.35 in intraday trade but closed at 14,219.60, up 0.63 per cent. Nifty FMCG index hit its 52-week high of 50,850.25 before ending at 50,626.40, up 0.47 per cent.
Expert's Views on Markets
"The domestic benchmarks experienced a strong rally and came close to their lifetime highs, primarily driven by positive global cues and robust predictions of domestic economic growth. An in-principle approval from US leaders for raising the US debt ceiling has generated optimism among global investors, who are now anticipating the next monetary plan of the Fed and economic data points. Meanwhile, the US PCE inflation rate that came in higher than anticipated raised the prospect of another rate hike by the Fed in its June meeting," said Vinod Nair, Head of Research at Geojit Financial Services.
Technical Views on Markets
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities observed that the formation of a small candle suggests indecisiveness between buyers and sellers.
"Analysis indicates a bullish market sentiment, but day traders should consider buying during intraday corrections and selling during rallies. The key support levels for the bulls are 18,550 and 18,500 while the crucial resistance areas are expected to be 18,650-18,700. Traders may consider exiting their long positions if the market falls below 18,500," said Chouhan.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said during most part of the day, the Nifty traded in a sideways manner and this is a consolidation after a sharp run-up which is a positive sign.
He pointed out that the daily momentum indicator which was lagging has finally provided a bullish crossover which is now in sync with the price action. The daily Bollinger bands have begun to expand and with prices moving along the upper band suggests that the uptrend is likely to continue.
"Now both price and momentum indicators are pointing towards a continuation of the positive momentum. Overall, from a short-term perspective, we expect the Nifty to target levels of 18,800. In terms of levels, 18,700 – 18,800 shall act as an immediate hurdle zone while the gap area formed today in the range 18,500 – 18,580 shall act as a crucial support zone from a short-term perspective," said Gedia.
Disclaimer: The views and recommendations given in this article are those of the 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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