Sensex scales Mt 65k; Nifty settles above 19,300; SpiceJet jumps 12%, Abans tanks 14%

Domestic equity markets kicked off the new month with a bang as bulls confirmed that this rally has more legs. Benchmark indices settled sharply higher on Monday on the back of upbeat global cues. On the domestic front, buying action in heavyweights and merger buzz of HDFC twins kept the buyers busy.

For the day, the 30-share pack BSE Sensex gained 486.49 points, or 0.75 per cent, to settle at 65,205.05, while NSE's Nifty50 surged 133.50 points, or 0.70 per cent, to settle at 19,322.55. Broader markets outperformed the headline peers but both BSE midcap and smallcap indices settled in green. However, gear gauge India VIX surged about 7 per cent to 11.54-level.

"The market's record-breaking momentum continued as the robust June GST collections, and the monsoon covering most parts of the country in the last few days brought cheers to investors. The rally has been mostly due to strong foreign fund inflows and India performing well on most of the economic parameters could further strengthen the fund flows in the near term," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

"Technically, the Nifty hovered between 19,250 to 19,335 price range, with the short-term technical set up still in the positive side. However, due to temporary overbought conditions we could see some profit booking at higher levels. For traders, 19,250-19,180 would be the key levels to watch out while 19,400-19,435 could act as a crucial resistance zone," he said.

On a sectoral front, the Nifty PSU Bank index surged about 4 per cent, while the Nifty oil & gas index gained over 2 per cent, each. Nifty metal, financial services and FMCG indices added about a per cent, each. Among the losers, the Nifty pharma and healthcare indices dropped about a per cent, each. The Nifty IT, auto and consumer durable indices were the other key laggards.

In the Nifty50 index, Grasim Industries surged and ITC surged more than 3 per cent each, while Bharat Petroleum Corporation also posted similar gains. Bajaj Finance, Reliance Industries and State Bank of India gained over 2 per cent, each. HDFC, Ultratech Cement and ONGC were among the other key gainers for the day.

Among the gainers, Power Grid, Bajaj Auto and Sun Pharma dropped 2 per cent each, while Cipla, Maruti Suzuki, Nestle India, UPL and Dr Reddy's Laboratories shed over a per cent each. Tata Consultancy Services, Tech Mahindra and Larsen & Toubro were the other laggards among the blue-chips.

Sentiments of investors are reinforced by positive domestic data and optimistic global cues. Global market was supported by resilient economic data, avoiding the possibility of a recession, said Vinod Nair, Head of Research at Geojit Financial Services.

"India’s stock market trend was broad-based, owing to the outperformance from energy, financial, metal, and FMCG sectors. Economic activities are gaining strength with PMI level enlarging to 57.8, indicating sustained demand for products, fostering a sense of confidence in the manufacturing prospects," he said.

A total of 3,840 shares were traded on BSE on Monday, of which 1,972 settled with gains. 1,721 stocks ended the session lower while 147 shares remained unchanged. A total of 12 shares hit their upper circuit, whereas only six shares tested the lower circuit levels for the day.

In the broader markets, ADF Foods surged more than 19 per cent, while Himatsingka Seide rose over 14 per cent. SpiceJet was up more than 12 per cent, while Lloyd Steels and Ador Welding gained 11 per cent each. Monarch Networth Capital, Suzlon Energy and RattanIndia Power surged 10 per cent each for the day.

Among the losers, Abans Holdings plunged more than 14 per cent, while Surya Roshni and 63 Moons Technologies tanked 8 per cent each. Parag Milk, Skipper, Wardwazard Innovations and Mobility dropped up 6 per cent each during the day.

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