Sensex, Nifty extend record run; Bajaj Finance & Bajaj Finserv jump 7%; Eicher dives 6%

Domestic equity markets continued to rally on Tuesday as Dalal Street witnessed another historic session. Muted global sentiments, however, pulled the markets slightly lower. That said, constant buying by overseas investors and sound fundamentals of the Indian economy supported the bourses.

For the day, the 30-share pack BSE Sensex gained 274 points, or 0.42 per cent, to hit a record closing high of 65,479.05, while NSE's Nifty50 rose 66.45 points, or 0.34 per cent, to scale a fresh closing peak of 19,389. BSE midcap index settled in red, while BSE smallcap index was marginally up. Fear gauge India VIX gained more than a per cent to 11.70-level.

The markets started the day with yet another record level of 19,400 for Nifty50 but due to the overbought conditions, the Index quickly erased all its gains in the opening trade itself. However, PSU Banks and IT counters came to the rescue and pushed the Index higher to retest its intraday high, said Aditya Gaggar, Director at Progressive Shares.

"In the last session, the weakening of momentum in the Mid and Smallcap counters did put pressure on the Index to trade lower and finally, Nifty50 settled at 19,389 and formed a Dragonfly Doji candlestick pattern which represents a short-term reversal. Mid and smallcap indices are showing an early sign of the negative divergence in RSI," he said.

On a sectoral front, the Nifty PSU Bank index gained about 2 per cent, while the Nifty IT index gained more than a per cent. Nifty media and financial services indices were the other key gainers. Among the losers, the Nifty oil and gas index dropped the most, followed by the Nifty auto index. Nifty private bank and realty indices also settled in red.

In the Nifty50 pack, Bajaj Finance surged more than 7 per cent, followed by Bajaj Finserv which gained about 6 per cent. Hero MotoCorp gained 5 per cent, followed by Tech Mahindra, Sun Pharma and Dr Reddy's Laboratories rose 2 per cent each. Titan, Cipla, NTPC, Wipro and Tata Consultancy Services added a per cent each.

Among the losers, Eicher Motors, which makes the Royal Enfield bike, dropped more than 6 per cent after the launch of Harley Davidson by Hero MotoCorp. Bharti Airtel and Grasim were the other key losers, followed by Grasim, Axis Bank, Reliance Industries, ONGC and IndusInd Bank for the day.

The market is maintaining its optimism; however, a profit-booking tendency is visible at the upper band as the recent rally has raised the market to the historic new high range, said Vinod Nair, Head of Research at Geojit Financial Services.

"The momentum of the market has shifted from the frontlines of this year to the laggards like IT, commodities, and PSUBs. The market is taking a breather ahead of the upcoming Q1 results. Pharma and banking displayed a positive trend, while the auto sector faced selling pressure following a mixed set of sales data for the month of June," he said.

A total of 3,823 shares were traded on BSE on Tuesday, of which 1,857 settled with cuts. 1,645 stocks ended the session with gains while 121 shares remained unchanged. A total of 165 shares hit their upper circuit, whereas 111 shares tested the lower circuit levels for the day.

In the broader markets, HPL Electric and Power hit an upper circuit of 20 per cent, while Aster DM Healthcare rose 14 per cent. Kaveri Seed Company gained more than 11 per cent, while 63 Moons Technologies, Genus Power and Suzlon Energy added 9 per cent each.

Among the losers, IOC Chemicals and Pharmaceuticals dropped more than 8 per cent, while ADF Foods tanked more than 7 per cent each. Vesuvius India settled 6 per cent lower, while Anant Raj shed 5 per cent. Force Motors, Choice International and Snowman Logistics were down 4 per cent each.

Also read: Eicher Motors shares hit hard, Hero MotoCorp up as Harley-Davidson X440A bookings begin. Analyst views

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