Sensex, Nifty settle higher; IRFC, MMTC & GMR Power gain 20%; sugar stocks jump too

Domestic equity markets kicked-off the week on a positive note and the headline indices managed to settle higher on Monday, after a volatile trading session. Buying in select heavyweight pockets pushed the markets higher, which was supported by the positive global cues after strong economic data.

Markets extended rebound amid volatility and gained nearly half a per cent. After the initial uptick, the Nifty oscillated in a range. All key sectors contributed to the move wherein. The market breadth was inclined strongly on the advancing side, thanks to the upbeat tone in midcap and smallcap packs, said Ajit Mishra, SVP - Technical Research at Religare Broking.

"Indications are favorable for further rebound as Nifty has surpassed a trend line resistance while holding the support zone of short-term average, that is, 20 EMA. However, a hurdle of around 19,650 may cap the upside and prompt some profit taking too. Amid all, we reiterate our view to focus on stock selection and preferring auto, IT and metal for long trades," he said.

For the day, the 30-share pack BSE Sensex rose 240.98 points, or 0.37 per cent, to settle at 65,628.14, while NSE's Nifty gained 93.50 points, or 0.48 per cent, to close at 19,528.80. Broader markets outperformed the headline peers as the BSE midcap and smallcap smallcap indices gained about a per cent each. Fear gauge India VIX eased about 4 per cent to 10.96-level.

All the sectors participated in the rally except for FMCG. An outperformance has been extended by the broader markets. On the daily chart, Nifty50 has made a DOJI candlestick pattern which generally indicates a reversal of the trend. A level of 20- and 50-DMA will act as a support which is 19,430 while immediate resistance stands at 19,580, said Aditya Gaggar, Director at Progressive Shares.

On a sectoral front, only Nifty FMCG and consumer durable indices disappointed and settled in red for the day. However, the Nifty IT, PSU Bank and metal indices gained more than 2 per cent each, while the Nifty media and realty indices added about a per cent each.

In the Nifty50 index, Coal India topped among the gainers and rose about 5 per cent for the day, followed by Jio Financial Services, Wipro, Tata Steel and Ultratech Cement, which gained 4 per cent each. Hindalco settled 3 per cent higher, while NTPC, Tech Mahindra, Infosys and Grasim ended 3 per cent up each.

Among the losers, Mahindra & Mahindra dropped more than about a per cent, while Nestle India, ITC and Axis Bank posted similar cuts. Bajaj Finance, Bajaj Auto, Bharti Airtel, Asian Paints, Titan Company and Kotak Mahindra Bank were among the other laggards on the index.

Recent releases of domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum, said Vinod Nair, Head of Research at Geojit Financial Services.

"Despite profit booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment," he said.

A total of 3,941 shares were traded on BSE on Monday, of which 2,303 settled with gains. 1,441stocks ended the session with cuts while 197 shares remained unchanged. A total of 442 shares hit their upper circuit, whereas 192 shares tested the lower circuit levels for the day.

In the broader markets, MMTC, GMR Power and Urban Infra and Indian Railway Finance Corporation (IRFC) hit an upper circuit of 20 per cent each. Jaiprakash Associates gained more than 19 per cent, while Magadh Sugar & Energy surged 18 per cent each. Igarshi Motors India and Bajaj Hindusthan Sugar added 13 per cent each, while Rail Vikas Nigam (RVNL) ended 12 per cent up.

Among the losers, EIH crashed 7 per cent, while NGL Fine-Chem dropped 6 per cent. Action Construction Equipment, PG Electroplast and Pokarna cracked 5 per cent each. RattanIndia Power, GMDC and Take Solutions were among the other key laggards for the day.

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