The benchmark equity indices ended Monday’s trading session in the positive territory. The NSE Nifty 50 gained 36.75 points or 0.16% to settle at 23,537.85, while the BSE Sensex jumped 131.16 points or 0.17% to 77,341.08. Bank Nifty index ended higher by 42.50 points or 0.08% to settle at 51,703.95.
The broader indices ended in mixed territory, with gain led by Large-cap and Mid-cap stocks. Auto and FMCG stocks outperformed among the other sectoral indices while Metal and Media stocks shed.
Mahindra & Mahindra, PowerGrid Corp, Shriram Finance, Sun Pharma, and Grasim are the top gainers on NSE Nifty 50 index whereas the top laggards include IndusInd Bank, Cipla, Adani Ports and SEZ, Coal India, and Tata Steel.
The Indian Volatility Index (India VIX) closed up by 6.65 % at 14.06.
“Despite the market being on a consolidative path, sectoral churning is visible in FMCG and consumer durables in anticipation of the budget expectations. Better tax collection and dividends from the RBI will encourage GoI on rural spending and tax benefits,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair also said that, In mid- and small caps, though the margin of safety in terms of valuation remains lacking, investors are keener on the growth story in capital goods, infra, auto, etc.
Commenting on the Bank Nifty, Rahul Ghose, CEO of Hedged.in said that Bank nifty spot also bounced nicely after the gap-down opening & traded above the day’s opening range, which is in the range 51237 to 51394, indicating the momentum is still bullish on the upside. The increased writing of the put OI at 51700 levels, indicates strong support for Bank nifty for June monthly expiry this week.
Ghose also added that the Bank nifty PCR traded highly volatile manner, opened at 1.02 levels and jumped to 1.26 levels, indicating at higher levels the index has limited room on the upside for the last week of June expiry.