Indian stock markets started the week on a strong footing on Monday. Good September quarter earnings and a better mood in domestic markets drew buyers.
The Nifty 50 rose 388 points, or 1.68%, to close at 23,441. The Sensex gained 1,233 points, or 1.66%, to end at 75,693.
Broader markets join the rally
Buying was not limited to large companies. The Nifty Smallcap 250 climbed 1.35%, while the Nifty Midcap 100 added more than 1%.
Market breadth was clearly positive. On the NSE, 2,445 stocks closed higher and 1,164 ended lower. Another 104 stocks finished unchanged.
Oil and gas, metals lead the sector charts
Among sector indices, the Nifty Oil & Gas index was the star performer, jumping almost 6%. The Nifty Metal index also did well, rising more than 3%.
Several other sectors gained between 1% and 2%. These included the Nifty Auto, Nifty PSU Bank, Nifty Consumer Durables and Nifty Realty indices.
Some pockets did not join the party. The Nifty Pharma, Nifty Private Bank and Nifty IT indices were among those that ended in the red.
What the charts say
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the Nifty closed comfortably above its 50-day simple moving average and moved close to a key resistance zone. He noted that the index has now formed a base just below the day’s close that could act as a cushion for further gains. According to him, a slip below that base would weaken the breakout the market has just made.
The day’s session was driven largely by earnings optimism, and the strength in oil and gas and metal shares gave the indices much of their lift. The weakness in IT, pharma and private banks shows the rally was not uniform across the market.
Leave a Reply