Sensex, Nifty end with gains; total market capitalization of BSE firms back to pre-covid levels

IT Companies and Banking stocks helped lift the Indices higher today.

Sensex and Nifty regained momentum and ended Thursday’s trading session higher, helped by RBI’s announcements regarding loan restructuring. S&P BSE Sensex ended 362 points or 0.96% higher at 38,025 points, while the 50-stock Nifty managed to close at the 11,200 mark. With the Nifty 50 closing at 11,200 mark, analysts say there could be further upside in the coming sessions. IT Companies and Banking stocks helped lift the Indices higher today. Apart from Nifty PSU Bank, all sectoral indices ended with gains. Nifty IT surged 1.7% while Nifty FMCG and Nifty Metal gained 1.3% each.

BSE market-cap recoups all losses: Market capitalization of all BSE listed firms stood at Rs 149 lakh crore at the end of Thursday’s trading session. Market capitalization of BSE listed firms has reached these levels for the first time since February. During the March mayhem that equity markets witnessed, BSE’s M-Cap dived down to as low as Rs 101 lakh crore.

RBI’s announcements push financials: Banking and finance stocks gained on Thursday after the central bank talked about MSME loan restructuring and did not talk about moratorium extension. “Banking stocks have reacted positively to the outcome despite no rate cut as the feared extension of moratorium has not happened and they will be spared of the requirement of high provisions if by Sept 30, the new committee’s recommendations are implemented,” said Deepak Jasani, Head Retail Research, HDFC Securities.

Top gainers: Tata Steel was up 3.8% as the top Sensex gainer followed by Infosys and HCL Technologies. Among midcaps Tata Consumer Products was up over 8%. Small cap stock Aarti Industries surged 18% during the day’s trade. Birlasoft was the other top gainer.

Top drags: Mahindra & Mahindra along with Bharti Airtel were the worst performing stocks on Sensex. Muthoot Finance and Natco Pharma were worst Midcap performers while JBM Auto and Gulf Oil were the top small cap drags.

What do the charts say: “Markets need to close above 11200 for the uptrend to continue. If we are able to do that tomorrow, we could see a rally all of next week which would take the markets to 11400-11500. The support continues to remain around 10900, which if broken can take us down to 10700,” said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.