Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 index ended nearly 2 per cent higher on Monday, in tandem with global peers. BSE Sensex ended 1,041 points or 1.9 per cent higher at 55,925 while NSE Nifty 50 zoomed to close at 16,661. Benchmark indices ended at nearly one-month high. On S&P BSE Sensex, 26 out of 30 stocks settled in green led by gains in Titan Company, Mahindra & Mahindra (M&M), Infosys, L&T, Tech Mahindra, HCL Technologies, Reliance Industries Ltd (RIL), among others. On the flip side, Kotak Mahindra Bank, Sun Pharma, Dr Reddy’s Laboratories, ITC were the only laggards. Nifty Bank ended 0.6 per cent up.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
With clarity now arising from last week’s US FOMC meeting about another 50 bps rate hike in the next few months, the market seems to be taking in its stride the future rate hikes and is now seen reversing the bearish trend. While fears of global recession and further rise in oil prices lurk, investors are currently engaged in buying after the recent free fall. Technically, in the last three days, the Nifty has rallied nearly 800 points and cleared the 16400 resistance level which is broadly positive. For traders, 16500 would be the trend decider level, above which the positive momentum is likely to continue till 16750-16800. Below 16500, uptrends would be vulnerable. Any further retracement could see the index retest the level of 16440-16420.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty rose for the third consecutive session on May 30 following positive global cues due to China easing Covid curbs and sharp Friday gains on the Wall street. Some local factors helping the mood include early arrival of monsoon in Kerala raising hopes of a favourable impact on agri crops. European stocks rose on Monday after China relaxedsome of the strictest virus controls of the pandemic, fueling risk-on sentiment for economic recovery. Indian stocks were anyway due for a bounce after continuously underperforming since early April 2022. 16800-16850 level on the Nifty could be tough to breach in the near term.
S Ranganathan, Head of Research, LKP Securities
Benchmark Indices were up 2% in afternoon trade today led by IT, Auto & state owned banks buoyed by global cues, a pause in the upward trajectory of the Dollar Index and early arrival of monsoon in the state of Kerala. The broader markets too mirrored the same trend with both the midcap & smallcap indices rising 2% in today’s trade. We did witness keen interest in Footwear, QSR and Realty stocks with many of them recording smart up-moves.