The buying came back after one day hiatus that snapped the longest winning run in 13 years but also helped valuations to cool down. The volatility gauge also fell nearly 2 per cent but remains elevated.
The 30-share pack Sensex advanced 254.57 points or 0.64 per cent to 39,982.98. Its broader peer NSE Nifty rose 82.10 points or 0.70 per cent to 11,762.45.
“The market has gained marginally after yesterday’s deep fall, but the overall trend is still fragile. The market trend has turned weak due to high stock prices in spite of lack of required fiscal support and rising spread of covid impacting economic recovery. The quick bounce of the market to above last high and near the pre-covid level, has brought volatility, which can stay for some time,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- HCL Tech drops over 3% after Q2 show; analysts project up to 80% upside
- IDBI Bank surges 14% as govt seeks approval to offload stake
- Mindtree plunges 7% after muted earnings growth in Q2
- UPL tumbles nearly 8% after subsidiary’s auditor resigns
- 89 stocks at 52-week highs: SRF, OFSS, JSW Steel, JK Cement, Hero Moto and Amber Enterprises among top names
Among the blue chip names, JSW Steel was the biggest gainer, up 6.69 per cent at Rs 311.05. Tata Steel, BPCL, Hindalco, Divi’s Laboratories, HDFC Bank, Grasim Industries and Shree Cements were among other top gainers.
UPL emerged as the biggest loser in the Nifty 50 pack, down 7.73 per cent to Rs 467.40. HCL Technologies, Mahindra & Mahindra, Asian Paints and Reliance Industries were among the top losers in the pack, down 1-4 per cent.
“Indications are in the favour of consolidation in Nifty thus we suggest continuing with the stock-specific trading approach and maintaining positions on both sides.”
Broader market indices outperformed their headline peers as Nifty Smallcap rose 1.39 per cent and Nifty Midcap 1.13 per cent. Nifty 500, the broadest index on NSE advanced 0.80 per cent.
On the other hand, top losers from the broader market space included Mindtree, Mphasis, Zee Entertainment, Equitas Holdings, KEI Infra and PVR that slipped in the range of 1-6 per cent.
Nifty Metal, which spiked nearly 4 per cent, was the top sectoral gainer on NSE. Nifty Realty, and Nifty Bank followed with over 2 per cent gains each. Nifty Media and Nifty IT were among those that ended the day with losses.
The market breadth was in favour of the gainers with 1,477 stocks ending in the green, while 1,157 names settled with cuts. As many as 89 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 54 names hit 52-week lows, mostly from the microcap space. About 200 stocks hit upper circuit limits and 232 lower circuit limits.
Bulls also dominated the trade in European markets. French CAC was the biggest gainer among them, up 1.78 per cent while UK’s FTSE and Germany’s DAX rose 1.27 per cent and 1.08 per cent, respectively. Asian markets closed mixed. Japan, Taiwan, South Korea, Indonesia and Thailand registered losses while China, Hong Kong and Singapore ended with gains.
Let’s prepare for Monday:
- Q2 earning: HDFC Bank and DMart will come out with their earnings on Saturday to which investors will react on Monday. Moreover, ACC, Britannia and HDFC Life Insurance are among those that will release their numbers on Monday.
- Forex reserves: RBI will release foreign exchange reserves data for the week ended October 9 later today that will show how much dollar the central bank has been buying. Investors may react to them on Monday.