The headline indices Sensex and Nifty posted a relief rally on Monday, after the Narendra Modi-led government announced a slew of reforms to spur up the slowing economy.
The headline indices Sensex and Nifty posted a relief rally on Monday, after the Narendra Modi-led government announced a slew of reforms to spur up the slowing economy. The Sensex closed 793 points up at 37,494 while the Nifty reclaimed the crucial 11,000-mark. Notably, the 30-share Sensex posted its single biggest gain in 3 months after May 20th, 2019. Intra-day the Sensex gyrated 1,052 points, with an intra-day high of 37,544.48 and low of 36,492.65. The broader advanced 228.50 points, or 2.11 per cent, to 11,057.85. During the day, it climbed a peak of 11,070.30 and touched a low of 10,756.55.
Yes Bank was the biggest Sensex gainer, closing 6.3% higher. Heavyweight financials including HDFC, Bajaj Finance, HDFC Bank, ICICI Bank, L&T, SBI, Axis Bank and Kotak Bank closed up to 5.2% higher on Monday. Shares of Tata Steel, Sun Pharma, Hero MotoCorp, Vedanta, RIL, Tata Motors, Maruti Suzuki and Bajaj Auto fell up to 2.01 per cent.
Taking stock of the rally in the stock market, Ajit Mishra Vice President, Research, Religare Broking noted that the markets recovered sharply amid volatility and gained over two percent, tracking favourable local cues and supportive global markets. According to the expert, the recent volatility indicates excessive pessimism among the participants this will not fade away anytime soon. “Besides, we’ve scheduled derivatives expiry on Thursday i.e. on August 29 and that would further add to choppiness. We advise using further rebound to reduce longs as Nifty has strong hurdle at 11,250-11,300 zone,” he said.
According to technical expert Milan Viashnav, while the markets have reacted positively, severe global weakness continues to persist. “The zone of 11,000-11,100 remains a stiff resistance zone for the markets. The global weakness will continue to remain a niggling worry for the markets once this reaction is digested,” Milan Vaishnav, CMT, MSTA
Consulting Technical Analyst at Gemstone Equity Research & Advisory Services told Financial Express Online. Meanwhile, the Indian rupee slumped 21 paise to 71.87 against the US dollar intra-day. Brent crude futures, the global oil benchmark, rose 0.92% to USD 59.34 per barrel.