Markets remained positive in the first half, extending early gains owing to RBI injected confidence.
The RBI on Wednesday maintained its dovish stance to support growth while the GSec buying program of ₹1-lakh crore will ensure liquidity. A dovish outlook from the United States central bank also positively impacted investor sentiments globally, further helping the domestic markets.
At 1 pm, Sensex, though off the day’s high of 50,118.08, was ruling in the green at 49,943.58 — up 281.82 points or 0.57 per cent. It hit an intra-day low of 49,801.71.
Nifty 50 was nearing the day’s high of 14,959.90, at 14,933.10, up 114.05 points or 0.77 per cent. It hit an intraday low of 14,864.55.
Sensex had opened at 49,885.26 while Nifty 50 had opened at 14,875.65.
Gaurav Garg, Head of Research, CapitalVia Global Research Limited, said, “The market opened with positive momentum and breached a significant level of 14900 and has been trading above the same level. The US markets remained near the previous closing levels making no significant movement. Asian markets were majorly trading in the green after the expectations of the boost in the economic recovery.”
Indian shares climb for third day as metals gain
Bank turn weak
The rally was led by metal stocks with JSW Steel, Tata Steel, Shree Cements, Hindalco and Tata Motors being the top gainers on the Nifty 50.
Meanwhile, banking and financial stocks lost the previous session’s momentum. Bajaj Auto, SBI Life, Bajaj Finance, IndusInd Bank and State Bank of India were among the laggards.
On the sectoral front, all indices, except for Nifty Bank and Nifty Private Bank were in the green. Nifty Bank was down 0.03 per cent while Nifty Private Bank was down 0.02 per cent.
Nifty Metal recorded the highest gains and was up 4.09 per cent.
IT and Auto stocks also performed well. Nifty IT was up 1.26 per cent while Nifty Auto was up 1.08 per cent.
Sensex climbs 300 points on RBI policy outcome; Nifty jumps over 14,750
Broader indices continue to outperform
All broader indices were in the green. Mid-cap and small-cap stock continue to outperform.
Nifty Midcap 50 was up 1.03 per cent while Nifty Smallcap 50 was up 1.19 per cent. The S&P BSE Midcap was up 0.95 per cent while the S&P BSE Smallcap index was up 1.06 per cent.
The volatility index was down 1.53 per cent.
However, investors are likely to remain cautious owing to the rising number of Covid-19 cases.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The surge in Covid cases continues to be a concern for the economy & markets. However, the saving grace is that since the lockdowns & restrictions are sporadic, the impact on the economy will be insignificant. Investors can hedge against the uncertainty surrounding the second wave with reduced exposure to economy-facing stocks and higher exposure to IT, pharma & FMCG segments. Rupee depreciation is another tailwind for IT. A distinct trend in the market is the outperformance of mid-small-caps, which is likely to continue. Even though Nifty is up only 0.7 per cent in April so far, many mid-small-caps have appreciated by more than 10 and 20 per cent per cent. This stock-specific action is likely to continue irrespective of the market trend.”