Sensex rises 123 points to settle near 63,000, Nifty above 18,600; Force Motors surges 20%, Stove Kraft falls 12%

Domestic equity markets on Tuesday extended their gains for the fourth session in a row. However, the gains were capped amid the mixed global cues. However, buying from overseas investors, optimism over strong economic data and eased concerns over the US debt ceiling supported the market sentiments.

"Markets are gradually inching towards the record high however mixed global cues are capping the momentum. We feel the scenario may continue and that may keep the traders guessing on the sustainability of the trend. Having said that, traders should maintain a positive tone till Nifty holds 18,250 and proactively manage their positions," said Ajit Mishra, SVP - Technical Research, Religare Broking.

For the day, the 30-share pack BSE Sensex gained more than 122.75 points, or 0.20 per cent, to settle at 62,969.13. NSE's Nifty50 gained 35.20 points, 0.19 per cent, to end the session at 18,633.85. BSE midcap and smallcap indices rose in tandem and posted mild gains during the day. Fear gauge India VIX dropped more than 2 per cent and settled barely above 12-mark.

"Due to the absence of cues from the US markets which were shut on Monday, local stocks witnessed cautious optimism with selective buying in banking and IT stocks. However, weakness in metals and oil & gas stocks limited the uptick. Investors are also awaiting the US debt agreement deal on Wednesday, as its outcome would determine the market direction in the near to medium term," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

"Technically, on the daily chart, the Nifty has formed a small body candle which clearly suggests the indecisiveness between bulls and bears. The intraday formation is also suggesting the continuation of a range-bound activity in the near future. For bulls, 18,665 would be the immediate breakout level, above which the market could rally till 18,725-18,750. On the flip side, below 18,550, selling pressure is likely to accelerate till 18500-18475," he said.

On a sectoral front, Nifty Media index emerged as the biggest gainer, while Nifty FMCG and Private Bank indices settled half a per cent higher, each. Among the losers, the Nifty Metal index dropped about a per cent, dropping a per cent, each. Nifty Auto, Realty, Consumer Durables and Healthcare indices were the other key laggards.

In the Nifty50 pack, ITC jumped more than 2 per cent, followed by a 2 per cent gain in HDFC Life Insurance Company. Bajaj Finserv, Kotak Mahindra Bank, Bajaj Finance, Wipro and HCL Technologies added about a per cent each. Maruti Suzuki, Ultratech Cement and Infosys were the other key gainers in the index.

On the downside, Hindalco, Adani Enterprises, Tata Steel, Tech Mahindra and Dr Reddy Laboratories tumbled over a per cent, each. Eicher Motors, Apollo Hospitals Enterprises, Sun Pharmaceuticals, Nestle India, Divis Laboratories and Coal India were the other key laggards among the blue-chips.

"The domestic market continued its rally as recent Q4 results indicated an improvement in demand. Further, expectations of a normal monsoon and a fall in international commodity prices support a rise in the margin profile," said Vinod Nair, Head of Research at Geojit Financial Services.

"The underlying trend is strong, supported by strong liquidity, the negative slope of the interest yield, and the forecast of strong QoQ growth in Q4 FY23 GDP versus 4.4 per cent in Q3," he said.

A total of 3,614 shares were traded on BSE on Tuesday, of which 1,703 settled with gains. 1,793 stocks ended the session lower while 118 shares remained unchanged. A total of 211 shares hit their upper circuit, whereas 154 shares tested the lower circuit levels for the day.

In the broader markets, Force Motors, Venus Remedies and Dilip Buildcon hit an upper circuit of 20 per cent, each. Eureka Forbes rose 13 per cent, while Monte Calro settled 12 per cent higher. Hikal gained 9 per cent, followed by a 7 per cent rise in AIA Engineering. Aurobindo Pharma and TCI Express rose 6 per cent, each.

Among the losers, Technocraft Industries (India) plunged 18 per cent, while Stove Kraft dropped more than 12 per cent for the day. Sunflag Iron and Steel was down 11 per cent, while Campus Activewear declined 8 per cent. Jubilant Pharmova was down 7 per cent, while Shriram Properties fell 6 per cent during the day.

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