Sensex, Nifty trading in green: Factors that led to a rally in equity market today

Domestic stock indices extended morning gains, with NSE Nifty hitting the 21,700 mark, the BSE Sensex less than 150 points away from kissing the 73,000 level. Broader market stayed upbeat, with 475 stocks hitting 52-week highs; some 460 stocks hit their respective upper circuit limits in hat looks like a pre-Budget rally.

Market update in noon session 

Sensex rose 1,118 points to 71819 and Nifty gained 355 points to 21,708. Market cap of BSE-listed firms stood at Rs 376.42 lakh crore. Reliance, Tata Motors, Kotak Bank, L&T  and PowerGrid were the top Sensex gainers, rising up to 5.47 per cent. Of 30 Sensex stocks, 25 were trading in green.  

Shares of Infosys, JSW Steel, ITC and tcs were the top Sensex losers, falling up to 0.75%.BSE midcap and smallcap indices rose 507 points and 433 points, respectively.   

Capital goods and banking shares were the top sectoral gainers with their BSE indices gaining 1000 points and 645 pts, respectively. BSE oil and gas index too gained 1011 pts to 25,679.

Here's a look at factors that led to a rally in market today. 

Asian shares open mostly higher

Major stock markets in Asia opened higher on Monday as investors awaited fresh key economic data scheduled during the week and the US Fed interest rate decision this Wednesday. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.56 per cent. Japan's Nikkei surged 0.76 per cent; Australia's ASX 200 rose 0.25 per cent; New Zealand's DJ shed 0.11 cent; China's Shanghai fell 0.09 per cent; Hong Kong's Hang Seng surged 1.33 per cent; South Korea's KOSPI rallied 1.13 per cent.

Oil prices rise on fresh Houthis attack

Oil prices jumped 1 per cent on Monday on fuel supply concerns after a missile struck a Trafigura-operated fuel tanker in the Red Sea and as Russian refined products exports are set to fall as several refineries are under repair after drone attacks. Brent crude futures climbed 83 cents to $84.38 a barrel by 2341 GMT after hitting a session-high of $84.80. US West Texas Intermediate crude rose 78 cents to $78.79 a barrel.

Technical outlook 

The direction of the market largely depends upon BankNifty and at present, it stands at its long-term trendline support. The immediate support is placed at 44,400 while the higher side is capped at 45,500. From the Auto and Metal segments, Motherson Sumi (Flag and Pole Breakout), Hindcopper (Inverted Head & Shoulder Breakout), NMDC (Symmetrical Triangle Breakout), and SAIL (Flag and Pole Breakout) look strong. Price and volume breakout was noticed in some of the Cement counters, investors should keep an eye on the same.

US shares settled mixed on Friday

The S&P 500 ended a five-session streak of record highs on Friday, with Intel, opening a new tab slumping after a bleak revenue forecast, while US economic data showed inflation moderating. Even as the S&P 500 and Nasdaq ended the session lower, all three major indexes recorded their third straight weekly gain. The S&P 500 declined 0.07 per cent to end the session at 4,890.97 points. The Nasdaq declined 0.36 per cent to 15,455.36 points, while the Dow Jones Industrial Average rose 0.16 per cent to 38,109.43 points.

Market breadth was positive with 2,305 stocks trading higher against 1545 stocks falling on BSE. 160 shares were unchanged.  

Foreign institutional investors were net sellers on Thursday as they offloaded shares worth Rs 2144.06 crore, as per exchange data. On the other hand, DIIs lapped up equities worth Rs 3474.89 crore.   

Previous session  

The domestic equity market ended in the red on Thursday. Sensex slipped 359 points to end the session at 70,700 and Nifty lost 101 points to settle at 21,352. 

Also read: Bajaj Finance Q3 results today: Profit likely to surge over 20%; provisions may rise. key things to watch  

Note: With inputs from PTI, Reuters and other agencies