Domestic equity markets reversed their early morning losses and staged a recovery in the late trading on Monday on account of buying in blue chip companies. Stocks markets started the day on a cautious note, but buying activity which took place during last leg of trade helped the frontline indices end the session at high levels by recapturing their crucial 8,600 (Nifty) and 27,900 (Sensex) levels. The BSE Sensex surged 120.41 points to close at 27,902.66, while the Nifty gained 34.90 points to settle at 8,607.45.
The cautious beginning of the stock markets was attributed to global markets, which fell after US Federal Reserve chair Janet Yellen’s speech who hinted at increase in interest rate hike during the current year.
Shreyash Devalkar, fund manager – Equities, BNP Paribas Mutual Fund, said, “the week started on a volatile note as key benchmark indices opened in the negative zone and oscillated around the flat line for most of the day before witnessing a sudden spurt of buying activity in late afternoon trade. Both the benchmark Sensex and the Nifty closed the day with gains of over 0.25%. Global markets on the other hand edged lower after Federal Reserve Chairwoman Janet Yellen on Fridaysignaled the possibility of an interest-rate increase later this year. On the sectoral front, the IT and FMCG indices on the National Stock Exchange (NSE) traded in the red while the media, auto and metals indices traded with gains of over 1%.”
On the global front, European markets were trading in red terrain in early deals, giving back gains seen of the previous session, while a holiday closure of UK markets is expected to keep activity low. Most of the Asian equity benchmarks tumbled on Monday after Federal Reserve Chair Janet Yellen indicated a US interest rate increase remains on the cards for this year.
The BSE Sensex touched a high and a low 27,952.85 and 27,698.71, respectively. There were 19 stocks advancing against 11 stocks declining on the index.The broader indices ended in green; the BSE Mid cap index rose 0.49 per cent, while Small cap index was up by 0.09 per cent.
The top gaining sectoral indices on the BSE were Auto up by 1.44 per cent, Industrials up by 1.44 per cent, Energy up by 1.36 per cent, Capital Goods up by 1.17 per cent and Metal up by 1.07 per cent, while IT down by 0.89 per cent, Telecom down by 0.81 per cent, Realty down by 0.81 per cent, TECK down by 0.59 per cent and Healthcare down by 0.29 per cent were the top losing indices on BSE.
The top gainers on the Sensex were Tata Motors up by 4.18 per cent, Reliance Industries up by 2.85%, Hero MotoCorp up by 2.81 per cent, ICICI Bank up by 2.10 per cent and Larsen & Toubro up by 1.99 per cent. On the flip side, Wipro down by 2.33 per cent, Lupin down by 2.15 per cent, HDFC Bank down by 1.55 per cent, Bharti Airtel down by 1.38 per cent and TCS down by 1.09 per cent were the top losers.
The Nifty traded in a range of 8,622.00 and 8,543.75. There were 30 stocks advancing against 21 decliners on the index.
The top gainers on Nifty were Zee Entertainment up by 4.76 per cent, Tata Motors up by 4.28 per cent, Hero MotoCorp up by 3.24 per cent, Reliance Industries up by 2.87 per cent and Tata Motors – DVR up by 2.55 per cent. On the other hand side, HCL Tech down by 3.04 per cent, Bharti Infratel down by 2.54 per cent, Wipro down by 2.29 per cent, Tech Mahindra down by 2.26 per cent and Lupin down by 2.13 per cent were the top losers.