Sensex, Nifty kick off FY25 on a strong note; metal, realty stocks shine; PNB Housing soars 19%

Domestic equity markets kicked-off the new financial year 2024-25 on a strong note as the headline indices scaled new record highs on Monday. Positive domestic and global cues supported the sentiments at Dalal Street. Positive economic data and rate cuts expectations lifted the moods of the markets, while optimism around Q4 earnings supported the buying.

For the day, the 30-share pack BSE Sensex jumped 363.20 points, or 0.49 per cent to settle at 74,014.55. NSE's Nifty50 index gained 135.10 points, or 0.61 per cent, to end at 22,462. Broader markets outperformed the headline peers as BSE midcap indiex  gained 1.65 per cent, while the BSE smallcap index surged more than 3 per cent. Fear gauge India VIX tanked about 6 per cent to 12.08-level.

Market started the week with modest gains and hit new life highs. On the sectoral front, realty and metal performed well while FMCG and Auto traded subdued. The broader indices outperformed the benchmark, wherein smallcap gained over three percent while midcap closed higher by one and a half per cent, said Ajit Mishra, SVP - Technical Research, Religare Broking.

"We are now eyeing 22,700 in nifty thus participants should maintain a 'buy on dips' approach. We feel the participation of the banking pack would continue to play a critical role in maintaining the prevailing momentum, while others may play a supportive role. Traders should maintain a stock-specific approach and focus on the stocks," he said.

On a sectoral front, the Nifty media index rallied 4.7 per cent, while the Nifty realty index rose 4.35 per cent for the day. The Nifty metal index rose 3.7 per cent, while the Nifty PSU bank index jumped over 1.5 per cent for the day. Among the laggards, only Nifty auto and FMCG indices disappointed.

In the NIfty50 pack, JSW Steel surged over 4.85 per cent, while Tata Steel rose about 4.5 per cent. Divis Labs also gained more than 4 per cent, while Shriram Finance and Adani Ports also rose about 3 per cent each. Among the laggards, Eicher Motors led the losers, falling 1.65 per cent. while Titan and Nestle also shed 1.5 per cent and 1.25 per cent, respectively.

The Indian market boarded on a strong trajectory at the onset of the new financial year, with indications pointing towards a continuation of this favourable momentum, in the near term, said Vinod Nair, Head of Research, Geojit Financial Services.

"This confidence is supported by a global rally in expectation of a Fed rate cut in June and a healthy domestic earnings growth forecast in Q4FY24. Metal stocks excelled today, owing to the swift pace of Chinese PMI data, indicating traction in the economic recovery. RBI monetary policy, India PMI data, and US non-farm payroll data will set the direction of the market," he said.

A total of 4,058 shares were traded on BSE on Monday, of which 3,236 settled with gains. 665 stocks ended the session with cuts while 157 shares remained unchanged. During the day, 738 shares hit their upper circuit, whereas 179 shares tested the lower circuit levels for the day.

In the broader markets, Best Agro, Suraj Estate Developers and EKI Green Energy hit an upper circuit of 20 per cent each. PNB Housing Finance rallied more than 19 per cent, while Delta Corp rallied about 13 per cent. Welspun Living and KRBL ended 12 per cent up each. Among the laggards, CG Power and Industrial Solutions was down 5 per cent, while Shaily Engineering lost 3 per cent for the day.