Sensex rises over 350 points, Nifty trades above 18,700; Tanla Platforms, PB Fintech jump up to 7%

Indian equity benchmarks traded higher in early deals on Tuesday, taking cues from the global markets. The domestic indices rose today led by strong buying interest in consumer, technology, pharma and energy stocks. The 30-share BSE Sensex jumped 368 points or 0.59 per cent to trade at 63,093, while the broader NSE Nifty moved 100 points or 0.54 per cent higher to trade at 18,702. Mid- and small-cap shares were positive as Nifty Midcap 100 gained 0.76 per cent and the small-cap 100 was up 0.50 per cent.

Investor sentiment improved after data showed domestic retail inflation cooled to a more than two-year low in May. India's annual inflation eased to 4.25 per cent in May, aided by a further fall in food inflation. Industrial output rose 4.20 per cent year-on-year (YoY) in April.

On the global front, investors awaited US inflation data and Federal Reserve's rate decision for more cues.

Asian markets edged higher, while oil prices recovered some ground after a slide on Monday on global demand concerns. Overnight, Wall Street equities closed higher.

Back home, 14 out of the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the green. Sub-indexes Nifty FMCG, Nifty Consumer Durables, Nifty IT, Nifty Pharma and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 1.37 per cent, 0.76 per cent, 0.57 per cent, 0.60 per cent and 0.43 per cent, respectively. Nifty Media was the only sub-index that was down.

"The domestic support to the market comes from strong economic cues. The May CPI inflation at 4.25 per cent and IIP at 4.20 per cent are better than expected. The decline in inflation is a big positive from the market perspective since it opens up possibilities of a rate cut by the end of 2023. The 4 per cent drop in crude price even after the OPEC production cut is good news for India. Taking cues from the better-than-expected economic news, DIIs have emerged as big buyers during the last two days. This will impart resilience to the market," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign institutional investors (FIIs) sold Rs 627 crore worth of Indian equities on a net basis on Monday, while domestic investors bought Rs 1,794 crore of shares, as per provisional NSE data.

On the stock-specific front, Asian Paints was the top Nifty gainer as the stock jumped 2.14 per cent to trade at Rs 3,263. Also, ITC, Titan, Nestle India and Axis Bank climbed up to 1.98 per cent.

In contrast, Adani Ports, Kotak Mahindra Bank, Hero MotoCorp, HDFC Life and HCL Technologies slipped up to 0.56 per cent.

The overall market breadth was strong as 2,163 shares were advancing while 903 were declining on BSE.

On the 30-share BSE index, ITC, Infosys, Asian Paints, Axis Bank, Hindustan Unilever (HUL), Reliance Industries, HDFC Bank and ICICI Bank were among the top gainers.

In addition, Tanla Platforms, TV18 Broadcast and PB Fintech jumped up to 7.23 per cent.

On the flip side, Zee Entertainment, Suzlon Energy and Schaeffler India slipped up to 3.52 per cent.

Sensex had climbed 99 points, or 0.16 per cent, to settle at 62,725 yesterday, while Nifty had moved 38 points, or 0.21 per cent, higher to end the session at 18,602.

Nifty outlook

 

"Nifty played around 18,595 for the most part of yesterday, giving little insights as to the directional bias, with several event risks lined up ahead. Meanwhile, it was noteworthy that while downswings were sizable and few, upswings were several and small. While this lends a neutral bias for now, it also allows for continuation in the direction of the default trend, which is up. However, momentum is missing, with 18,720-18,887-19,070 appearing to stand in the way of directional upsides. While we will continue to eye 18,595, watch out for possible rejection trades or distribution on the approach of 18,676. Alternatively, as maintained yesterday, in the event of 18,500 giving away, 18,430 will hold only a slim chance of holding with 18,200 emerging as the first downside target, while also raising the vulnerability of the 50-DMA now positioned at 18,047. This though is less favoured now," said Anand James, Chief Market Strategist at Geojit Financial Services.

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