Sensex jumps 478 points, Nifty settles above 18,000-mark
The benchmark indices staged a sharp recovery on Monday, led by advances in technology, automobile and financial stocks. The Sensex jumped 477.99 points to close at 60,545.61, while the Nifty added 151.75 points to 18,068.55. However, the Bank Nifty dragged the markets amid selling pressure in the private banking counters. The index closed 135.45 points or 0.34% lower at 39,438.25. The market’s fear gauge, Volatility Index India (VIX), rose 3.75% to 16.34.
“Despite a muted opening, indices erased its early losses boosted by favourable macros like fuel tax rate cut, improved PMI numbers and higher festive season sales numbers,” said Vinod Nair, head of research, Geojit Financial Services.
Of the 30 scrip in the Sensex, 22 ended in the green. Titan Company ended being the top gainer, up 4.2%, followed by UltraTech Cement, Bajaj Finserv, Tech Mahindra, Kotak Mahindra Bank, and HDFC. Sectorally, the Nifty IT, Nifty Metal, Nifty PSU Bank, and Nifty Realty rallied nearly 2.15%.
IndusInd Bank was the top loser in the banking sector, down more than 10% at Rs 1,061.15 amid allegations of loan ever-greening by a whistleblower. The private lender, however, clarified on the matter and denied all accusations.
Technically, the Nifty is likely to trade in a positive range in the short-term. A breakout above the 18,100 levels could further lead the index to upside levels of 18,350 in upcoming sessions, said analysts.
“Upside breakout of the current range at 18,060-18,100 levels could open further upside towards the next resistance of 18,250-18,350 levels in the next few sessions,” said Subash Gangadharan, senior technical and derivative analyst, HDFC Securities.
In the overall market breadth, around 1,808 shares advanced, 1,551 shares ended red, and 191 shares were unchanged on the BSE. Furthermore, 395 stocks hit their upper price bands on Monday, while 201 stocks slipped to hit lower circuits.
The primary market also remained abuzz as the IPO of Paytm opened for subscription on Monday at a price band of Rs 2,080-2,150 per share. The company’s Rs 18,300-crore share sale will close on November 10.