Investors richer by Rs 2.81 lakh crore as Sensex ends 593 points higher

NEW DELHI: Stock market bulls continued buying on Monday amid hopes of a US stimulus package and encouraging data from China indicating improvement in the economy. A positive opening in the European markets also added to the momentum.

Data showing profits at Chinese industrial firms grew for the fourth straight month. China’s industrial profits rose 19.1 per cent in August, the country’s National Bureau of Statistics announced over the weekend.

The 30-share pack Sensex rose 592.97 points or 1.59 per cent to 37,981.63. Its broader peer NSE Nifty added 177.30 points or 1.60 per cent to 11,227.55. India VIX, the measure of volatility, continued its decline and settled at 19.57, down 5.33 per cent.

“Indian benchmark indices gained strength throughout the day, helped by gains in banking and financial stocks. Global cues were also positive, setting aside concerns about the increasing virus infections and related impact. Indian markets were also banking on further stimulus and other measures by the government to boost the economy,” said Vinod Nair, Head of Research at Geojit Financial Services.

Investors became richer by Rs 2.81 lakh crore as the total market cap of BSE-listed firms rose to Rs 155.09 lakh crore.

Market at a glance:

  • Lakshmi Vilas Bank climbs over 5% after CEO, directors ousted
  • Multiplexes zoom after West Bengal allows reopening; PVR spikes 12%
  • All sectors on NSE gain; Nifty Media surges nearly 5%
  • Broader markets outperform; Nifty Smallcap advances nearly 4%
  • 117 stocks hit 52-week highs: Coforge, Escorts, Info Edge, IndiaMart, Natco Pharma and Persistent Systems among other names
  • RBI postpones MPC meeting, new dates to be announced soon

“Traders should limit overnight positions and keep booking profits while investors follow an accumulation strategy.”

— Vinod Nair, Head of Research, Geojit Financial Services

After the Reserve Bank of India said it will not hold its monetary policy meeting (MPC) meeting as scheduled, investors’ focus turns to other developments related to US stimulus and the IPO market.

Among bluechip stocks, IndusInd Bank was the biggest gainer, up 7.99 per cent to Rs 556. Bajaj Finance, Axis Bank, ONGC, Tata Motors, Power Grid, Adani Ports, Sun Pharma and ICICI Bank gained 4-7 per cent.

On the other hand, Wipro was the biggest loser among Nifty constituents, dropping 0.75 per cent. It was followed by HUL, Nestle India and Infosys that ended with cuts of 0-1 per cent.

Broader market indices were again in the spotlight and outperformed their headline peers. Nifty Smallcap surged 3.58 per cent while Nifty Midcap advanced 2.99 per cent. Nifty 500, the broadest index on NSE, climbed 1.9 per cent.

Escorts, Adani Enterprises, L&T Financial Holdings, MCX, JB Chemicals and Pharmaceuticals and Aegis Chemicals were among the top gainers from the mid and smallcap indices, rising in the range of 6-10 per cent.

Conversely, losers were far and few in broader market space. CESC, Edelweiss Financial Services, Crompton Greaves, GMM Pfaudler, HEG Infra and Sonata Software were among the top losers, ending with cuts of 1-5 per cent.

“Traders should limit overnight positions and keep booking profits while investors follow an accumulation strategy,” Vinod Nair, Head of Research at Geojit Financial Services.

All sectoral indices on NSE ended the day in green. Nifty Media was the biggest gainer, up 4.77 per cent, followed by Nifty Auto, Nifty Realty, Nifty Bank, Nifty Private Bank and Nifty PSU Bank that gained over 3 per cent each.

The market breadth was in favour of the gainers with 1,925 stocks ending in the green while 758 names shutting shop with cuts. As many as 117 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 57 names hit 52-week lows, mostly from the microcap space. About 400 stocks hit upper circuit limit and 198 lower circuit limit.

European markets were trading higher. Frankfurt’s DAX was among the biggest gainer from the continent, up 2.69 per cent followed by Paris’ CAC and London’s FTSE. Barring China and Indonesia that closed marginally lower, all Asian markets also ended the day with gains. Taiwan SE Weighted Index was the biggest gainer, up 1.88 per cent.

Let’s prepare
for tomorrow:

  • 3 IPOs: IPOs of UTI AMC, Likhitha Infrastructure and Mazagon Dock will open for bidding on Tuesday.
  • US Prez debate: The presidential debate between incumbent Donald Trump and challenger Joe Biden will be keenly watched.
  • US stimulus: Investors will also keep track of developments on the promised stimulus package.

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