Sensex, Nifty gain in early trade; Shreyas Shipping hits upper circuit; Gland Pharma tanks 11%

Bucking the muted global cues, domestic equity markets kicked off the week on a positive note and edged higher on Monday after opening on a flat note. Investors shrugged off jitters after the Reserve Bank announced to withdraw Rs 2,000 currency notes from circulation on Friday evening. BSE Sensex was trading 177.94 points, or 0.29 per cent higher, at 61,907.62 at 9.40 am, while NSE's Nifty50 was up 65.70 points, or 0.36 per cent, at 18,269.10 at the same time. Broader markets moved in tandem with the headline peers as BSE midcap and smallcap indices were in green. However, fear gauge India VIX increased about a per cent to 12.42-level. NPTC rose 2 per cent, leading the gainers on the Sensex. Power Grid, Infosys, Larsen & Toubro and Wipro added about a per cent each. Among the losers, IndusInd Back topped in the 30-share pack. Bharti Airtel, Nestle India, Asian Paints and ICICI Bank were among the other notable stocks seen in red. The near-term uncertainty in the global equity markets is likely to continue since there is no resolution yet on the US debt ceiling issue. A strong rally will happen only after this impasse is out of the way. The undercurrent of the market is bullish, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "An important message for investors is that interest rates have peaked, globally as well as in India, and this is positive for equity markets in the second half of CY 2023. Rate sensitives like financials, real estate/construction and autos will benefit from a probable rate cut by the end of 2023. From the valuation perspective, IT stocks are good value buys now," he said. In the broader markets, Shreyas Shipping hit the upper circuit amid the bulk-deal buzz, while Nilkamal rose 15 per cent after a strong March 2023 quarter results. Shaily Engineering, Fineotex Chemicals, Man Industries and Narayana Hrudayalaya posted double-digit gains in the early hours. Bannari Amman Sugars plunged 13 per cent, while Waaree Renewable Technologies tanked 12 per cent during the early trading session. Balaji Amines tumbled 11 per cent after muted Q4 results, while Gland Pharma continued to bleed after a flop show in the earnings, hitting new lows. A market rebound from major support levels signals bullishness, and we may expect the market to continue rising. Positional traders can purchase declines with suitable SL near the crucial support noted at 18050 levels, said Choice Broking in its note. Asian stocks and Wall Street futures struggled higher on Monday as US debt ceiling negotiations approached crunch time after stalling last week, while lingering banking fears and fresh geopolitical worries also capped sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.56 per cent. Oil prices slipped on Monday as caution around the US debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers. Brent crude futures fell 48 cents, or 0.6 per cent, to $75.10 a barrel by 0201 GMT while US West Texas Intermediate (WTI) crude for July delivery, fell 45 cents, or 0.6 per cent , to $71.24. The dollar nursed losses against the yen and euro on Monday following a surprise breakdown in US debt ceiling negotiations and after Federal Reserve chair Jerome Powell indicated a preference to slow rate hikes. The dollar index, which measures the US currency against six major peers, edged 0.04 per cent lower to 103. 

Also read: JSW Steel shares may have limited upside potential as valuations factor in most positives 

Also read: Zomato shares at Rs 45 or Rs 90? Here are new stock price targets post Q4 results