Sensex adds 100 pts, Nifty settles a tad below 21,000; Coffee Day surges 16%, Dr Reddy's tanks 5%

Domestic equity markets extended their gains on Monday as the benchmark indices kicked off the week on a positive note. However, the gains trimmed amid the profit booking after BSE Sesnex scaled 70,000 mark and Nifty reclaimed 21,000-levels for another day. However, traders will be looking at the US Fed's FOMC meeting outcome later this week.

For the day, BSE's Sensex added 102.93 points, or 0.15 per cent, to settle at 69,928.53. NSE's Nifty50 gained 27.70 points, or 0.13 per cent, to end the day at 20,997.10. Broader markets outperform the headline indices as BSE midcap and smallcap indices jumped about a per cent each. Fear gauge rose more than 2 per cent to 12.76-mark.

The Bank Nifty index encountered resistance at higher levels, but the overall sentiment remains bullish, supported by a robust foundation, said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities. "The index is currently adopting a buy-on-dip strategy, suggesting that any declines towards the specified support zone present opportunities to initiate long positions," he said.

On a sectoral front, only Nifty pharma and healthcare indices dropped about a per cent each. All other sectors ended up for the day. The Nifty PSU bank, media and metal indices gained more than a per cent. The Nifty FMCG and realty indices were other gainers for the day.

In the Nifty50 pack, UltraTech Cement and UPL surged more than 3 per cent each, while Adani Entertainment, Nestle India, Power Grid, Bajaj Auto and Adani Ports gained more than a per cent each. Among the laggards, Dr Reddy's Laboratories tanked 5 per cent for the day, while Axis Bank, Cipla and Eicher Motors declined over a per cent each.

The market crossed 70,000 levels today, while the broader market outperformed the main indices. However, profit booking was evident at higher levels as traders anticipated clues from tomorrow's significant data releases on inflation from the US and India, as well as the IIP, said Vinod Nair, Head of Research at Geojit Financial Services.

"While US inflation is predicted to remain stable, the market anticipates a rise in domestic inflation. The better-than-expected US job data and a moderate increase in US bond yields from the recent lows, however, also encouraged investors to book profits at higher levels. Investors will be closely watching the upcoming FOMC meeting tomorrow for clues about potential future rate cuts while expecting to keep rates the same this time.," he said.

A total of 4,035 shares were traded on BSE on Monday, of which 2,394 settled with gains. 1,465 stocks ended the session with gains while 176 shares remained unchanged. During the day, 510 shares hit their upper circuit, whereas merely 205 shares tested the lower circuit levels for the day.

In the broader markets, Coffee Day Enterprises and Sanduma Manganese & Iron Ores surged more than 12 per cent each, while Wockhardt rose more than 14 per cent each. Subros and Patel Engineering advanced 11 per cent each. On the other hand, 63 Moons Technologies, Ashapura Minechem and Carysil tumbled 5 per cent each.

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