Sensex ends 60 points higher in volatile trade; Nifty nears 11,400

NEW DELHI: Domestic benchmark indices ended a choppy day with marginal gains, thanks to a late hour rally, snapping two day losing streak on Monday. A rebound is European stocks and development on the vaccine front lifted market sentiment in late trade but gains were checked by lower than expected job growth in the US and weak Asian markets. US employment growth slowed further in August and permanent job losses increased as money from the government started running out, raising doubts on the sustainability of the economy’s recovery. Meanwhile, India became the second most affected country from Covid19, surpassing Brazil.

The 30-share index Sensex settled up 60.05 points or 0.16 per cent at 38,417. Its broader peer Nifty was up 21.20 points or 0.19 per cent to 11,355.05. Gains were largely supported by some of the top names in the IT and consumer sector.

Market at a glance

  • Voda Idea rebrands itself as Vi; stock cuts early gains to end over 2%
  • Happiest Minds IPO sails through on Day 1 of bidding process
  • Nifty Midcap falls for the second consecutive day; down about 1%
  • FMCG stocks see sharp rebound; Nifty FMCG up 2% from day’s low
  • 112 stocks at 52-week highs: Dixon Tech, Timken, Granules India, IndiaMart and Wabco India among top names

“Indian markets traded with volatility and finally ended the day with a positive bias. Virus infections continued to rise unabated and this fear combined with a sell off seen in the US markets, served to bring in doubts regarding the continuation of the momentum seen in recent times in the market,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market is more or less in a consolidation phase after a huge rally in the last few months, analysts believe. In an eventless week, traders are likely to look at global cues to decide the direction of the market.

Among bluechip names, Bharti Infratel was the biggest gainer, up 5.72 per cent at Rs 227.15. HDFC Life, Dr Reddy’s Labs, ITC, HUL, TCS and Asian Paints were among other top Nifty gainers, up 1-4 per cent. On the other hand, M&M was the biggest loser in the 50-share pack. It fell 3.59 per cent to Rs 609.30, followed by UPL, Bajaj Finance, GAIL, NTPC, Hero Moto, UltraTech Cements and ONGC that fell 1-3 per cent.

Broader market was indecisive as smallcaps saw some buying but midcaps were under pressure. Nifty Smallcap added 0.12 per cent and Nifty Midcap extended its losses to the second day, down 0.86 per cent.

Pfizer, JSW Energy, Adani Gas, Granules India, Sterlite Technologies and Vakrangee were among the top gainers from broader space, rising in the range of 3-9 per cent. IRCON, HSCL, Bajaj Electric, Jubilant Life Sciences, Future Retail and Tata Consumer were tip losers, down up to 6 per cent.

“Considering the market scenario, traders should maintain positions on both sides and prefer hedged bets. It’s easier said than done but volatile swings across the board require extra caution and active position management.”

— Ajit Mishra, VP – Research, Religare Broking

Among sectoral indices, Nifty Realty extended its loss to the third day, down about a per cent. Nifty Bank and Nifty Auto also fell. Nifty IT and Nifty FMCG, on the other hand, were the biggest gainers, up 0.57 per cent each. Nifty Media also advanced 0.49 per cent.

Market breadth was in favour of losers with 1,226 stocks ending in the green while 1,494 names closed with cuts. As many as 112 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 46 names hit 52-week lows, mostly from the microcap space. About 300 stocks hit upper circuit limit and 245 lower circuit limit.

Globally, European markets were trading with gains, bucking the trend in Asian markets. The UK’s FTSE was up 1.50 per cent and France’s CAC 1.21 per cent. German DAX also gained 1.37 per cent. Barring South Korea and Singapore, all Asian markets closed with cuts. Shanghai Composite was the biggest loser, down 1.87 per cent.

Prepare for tomorrow:

  • There is no specific event lined up but traders will keep an eye on developments in global market and situation on LAC border.

Credit: Stocks-Markets-Economic Times

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