The Indian market saw yet another volatile session on September 9 but managed to end the day on a high on positive global cues. Concerns about higher inflation numbers, to be released on September 12, saw the market swing between losses and gains.
At close, the Sensex was up 104.29 points, or 0.18 percent, at 59,793.14, while the Nifty ended 34.6 points, or 0.19 percent, highers at 17,833.35.
“The market now believes that the sharp rate hikes will not cause a deep recession and that's why the global cues have turned slightly positive”, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
A strong showing by the western markets on the previous day set the tone for the Asian markets. The Indian benchmarks responded with a gap-up opening.
“Domestic bourses kicked off the trading session on a strong footing, backed by positive sentiments across global markets, however, it succumbed to profit booking after surpassing the psychological 60,000 mark”, Vinod Nair, Head of Research, Geojit Financial Services said of the Sensex.
Adani Ports, Shree Cements, IndusInd Bank, State Bank of India and HUL were the top Nifty gainers, rising between 1.3 and 3.1 percent each.
The biggest Nifty loser were Larsen & Toubro, M&M, HDFC Life, Bajaj Finserv and SBI Life Insurance, which declined between 0.74 to 1.2 percent.
Backed by sustained buying, Nifty IT, which has had a rough run, was the top performing index, gaining 2.2 percent.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 59,793.14 | 104.92 | +0.18% | |
| Nifty 50 | 17,833.35 | 34.60 | +0.19% |
| Nifty Bank | 40,415.70 | 206.75 | +0.51% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Tech Mahindra | 1,126.65 | 37.05 | +3.40% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| UltraTechCement | 6,783.65 | -136.00 | -1.97% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28724.00 | 621.60 | +2.21% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Infra | 5205.25 | -24.20 | -0.46% |
The banking and auto index gained 0.5 percent each, while FMCG index was up 0.1 percent.
Both the Sensex and the Nifty gained 1.7 percent during the week, buoyed by falling crude prices and a decline in domestic bond yields.
Autos were the top losers during the week, while banks, capital goods and healthcare were the top gainers.
Stocks & sectors
On the BSE, IT was the top gainer, rising 2.06 percent, while BSE Teck inched up by 1.6 percent.
Banks, metal and auto indices ended on a positive note with gains of close to 0.5 percent each.
The BSE telecom index was the top loser, declining 0.7 percent. BSE utilities lost 0.6 percent, while BSE power and realty were down 0.5 percent each.
The broader indices, too, ended higher. The BSE midcap gained 0.16 percent and the smallcap 0.18 percent.
The India VIX, which indicates the degree of volatility traders expect over the next 30 days, declined by 3.2 percent to 17.71.
A long build-up was seen in GSPL, Astral and Gujarat Gas, while Rain Industries, PVR and Shriram Transport Finance witnessed a short build-up on their counters.
More than 200 stocks on the BSE rose to a new 52 week high. These included Aditya Birla Fashion & Retails, Adani Enterprises, Adani Ports, Bank of Baroda, Concor, DCB Bank, ICICI Bank, M&M and Pidilite Industries.
Outlook for September 12
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty is stuck in a consolidation range for the last few weeks. On the higher side, the psychological mark of 18,000 is acting as a cap.
On September 9, the index moved up to test this barrier where the selling pressure started building up again as the it inched closer to 18,000. Unless that level is surpassed, the Nifty is expected to stay in the consolidation mode for the next week.
Internal structure shows that the index is preparing for a down move and is expected to test 17,500 in the coming sessions. The broader market is also poised to consolidate recent gains.
Ajit Mishra, VP-Research, Religare Broking Ltd
We maintain our bullish view on the market and suggest continuing with the “buy-on-dips” approach. The recent rebound in the US markets is further adding to the comfort.
As we are seeing buying interest across the board, the focus should be more on the best-performing sectors liked banking, financials, auto and FMCG, and remain selective in the others.
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