Indices end with positive gains
Markets opened on a positive note as the SGX Nifty hinted at a positive opening, as did other Asian counterparts. The Nifty opened near its previous all-time highs, after which the index entered a period of consolidation. However, in the last hour, the index managed to break away from the sideways trend and reach to all time high of 15705 during intraday. The Nifty gained nearly 100 points from the day’s low before setting new all-time highs, extending its gains to two days in a row. This was supported further by a more than 8% drop in the VIX index. The Nifty bank index recovered nearly 300 points from its low of the day, led by heavyweight counter HDFC Bank.
Broader Market Movement
Looking at the broader market, the Nifty Midcap index is at all-time highs, finishing with a nearly 1% gain, while the Nifty Smallcap index rose 1% to extend its rally. The Nifty auto index, which gained a percentage point yesterday as a result of a strong rally in Motherson Sumi, finished nearly unchanged in today’s session. Except for Nifty Pharma, which lost its three-day winning streak, every other sector finished in the green. Titan, which soared nearly 7% to new record highs, ONGC, and Eicher Motors were the other top gainers during the day, while Indusind Bank, Wipro, and Cipla were the top losers in the Nifty pack.
Stocks in News
The stocks which made the news today, starting with Muthoot Finance, the stock has hit new 52-week highs after a sharp rally in the previous two sessions on the back of strong volume after the company’s Q4 PAT saw a 22 percent increase. Wipro, on the other hand, becomes the third IT company, following TCS and Infosys, to reach the Rs 3 trillion market capitalisation milestone. The stock finished the day down 4 points.
Global Data Front
On the global market front, all three major Wall Street indices ended with marginal gains ahead of the release of the closely watched Non-farm payroll figures later this week. Whereas European markets are trading in the red, with the FTSE 100 index down one percent,
Summing up, the benchmark indices ended on a positive note, with the 30-share BSE Sensex ending at record closing levels of 52232, up 383 points or 0.74 percent, and the Nifty closing at 15690, up 114 points or 0.73 percent. As the Nifty reached an all-time high today, if the index surpasses the 15700 level, the momentum is likely to continue until the 15750 – 15800 levels, whereas 15450 – 15400 is likely to act as a strong support. Tomorrow, The RBI Policy Statement will be keenly watched by the market participants, as it could offer cues to the economy, going forward.
Mr. Aamar Deo Singh
Head Advisory, Angel Broking Ltd
3rd June 2021
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