Domestic benchmark indices kicked off the week on a higher note and opened with gains on Monday, tracking the positive global cues and strong Q3 earnings by index heavyweights.
Cooled down inflation in US also aided the investors sentiments as hoped of slower rate hikes by the US Fed boosted the sentiments. Traders will be keenly watching India Inc's earnings and FII's selling. Wall Street will observe a holiday on Monday.
At 9.20, the 30-share pack BSE Sensex was trading 310 points or 0.51 per cent higher at 60,571, whereas NSE's Nifty50 jumped 87 points or 0.48 per cent 18,043.6 at the same time.
The index has held key support of 17,800 on multiple occasions over pat three weeks, indicating buying demand at elevated support base near 100 days EMA of 17,800, said ICICIDirect Research. "Going ahead, holding the same will keep positive option open towards upper band of the channel which is placed at 18,300," it added.
Broader markets gained in tandem with the headline peers as BSE midcap and smallcap indices added half a per cent each. Fear gauge India VIX surged 3 per cent to 14.84-level.
Barring the Nifty metal index, all the sectoral indices were trading in green on Monday. Banking and financial counters led the rally at Dalal Street, whereas IT, media, auto and realty stocks also supported the gains.
As the fundamentals of the economy and corporate earnings are good, FII selling is unlikely to impact the market significantly. India’s macros are stable and early Q3 results indicate good earnings growth. Q3 results of IT majors and HDFC Bank indicate that IT and banking are on strong wicket, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Some FIIs are shorting India and moving money to other markets like Taiwan, South Korea and Thailand, purely on valuation concerns. This trend is unlikely to last long. Dollar index dipping to 101.85 is positive for emerging market equity and India cannot be ignored for long," he said.
On the Nifty50 pack, Bajaj Finserv jumped 2 per cent each, followed by a one per cent gains in Bajaj Finance, IndusInd Bank, HDFC Bank, SBI and HDFC Life Insurance each. On the contrary, Bharat Petroleum, JSW Steel, Tata Steel, M&M and NTPC topped among the losers with a one per cent fall each.
In the broader markets, Sula Vineyard surged 6 per cent after strong Q3 updates, whereas shares of RattanIndia Enterprises zoomed 12 per cent after 100 per cent acquisition of EV company Revolt Motors. Just Dial, HEG, L&T Finance Holdings, and Speciality Restaurants rose up to 10 per cent on Monday.
Among the weaker counters, Music Broadcast (Radiocity) plunged about 20 per cent, followed by Apar Industries, Astec Lifescieces, Vishnu Chemical, Jindal Steel & Power and Talbros Automotive tanked 3-5 per cent each. Avenue Supermarts shed over 4 per cent after muted performance in the December 2022 quarter.
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