Indices end on a positive note

Benchmark indices extended the previous week’s rally, as the indices began the week on a positive note, in line with what the SGX Nifty was indicating. The Nifty continues to trade at all-time highs, indicating that the bulls continue to have the upper hand on the market. The index set a new all-time high, surpassing the previous high of 15733. Furthermore, the index has now made new highs in three consecutive sessions.

Broader Market Movement

The broader markets outperformed the benchmark indices once more, with the midcap index closing higher for the fourth consecutive session and the smallcap index also closing higher. Looking at sector performance, the Nifty Energy index was the top gainer of the day, gaining nearly 2%, followed by the Infra, Media, and IT indexes, all of which gained more than 1%. On the stock specific side, Adani Ports, Power Grid, and NTPC were the top gainers, while Bajaj Finance & Bajaj Finserv and HDFC were among the top losers amongst Nifty 50 stocks.

Stocks in News

TVS Motors was the stock that was in the news today. The stock gained more than 4% intraday as a result of a high volume surge as Sundaram Clayton, a TVS Group company, is expected to have sold a 5% stake in the company in a block deal. Another stock was Bajaj Finance, whose stock fell more than 4% after the company released its mid-quarter update, which stated that the company may see higher non-performing assets in the first six months of FY22 due to Covid-induced lockdowns.

Global Data Front

On the global front, the major averages in the United States all closed firmly in positive territory on Friday, ending with marginal gains for the week. The initial strength on Wall Street came after the Labor Department reported that job growth in the United States accelerated in May. However, it fell short of expectations. The Non farm payroll employment increased by 559,000 in May after increasing by an upwardly revised 278,000 in April. Whereas the European indices are trading on a positive note, with the DAX and CAC 40 reaching all-time highs.

Summing Up, the benchmark indices Nifty and Sensex witnessed record closing highs on Monday, as India VIX continues to fall, currently trading below 16 levels. The Sensex gained 228 points, or 0.44 percent, to close at 52,328, while the Nifty gained 81 points, or 0.52 percent, to close at 15,751. Going forward, the levels to watch for Nifty on the upside are at 15850, and on the downside are at 15500.

Mr. Aamar Deo Singh
Head Advisory, Angel Broking Ltd
7th June 2021