The market rebounded strongly on Monday, led by banks and financials. Benchmarks rose nearly 2 percent, led by heavyweights such as HDFC Bank and ICICI Bank. Analysts said a drop in the active workload of Covid-19 and strong fourth quarter results so far by India Inc have boosted investor sentiment, who have resorted to widespread buying.
The BSE Sensex closed at 49,580.73, up 848.18 points or 1.74% after hitting the day’s high of 49,628.42 in the second half and a low of 48,923.13. The Nifty 50 closed at 14,923.15, up 245.35 points or 1.67%. It hit an intraday high of 14,938.00 and a low of 14,725.35.
The scale of the market turned positive with 2,099 stocks advancing, 1,051 declining and 209 unchanged on BSE. Up to 495 titles reached the upper circuit and 219 the lower circuit; 290 hit their 52 week high while 51 hit their 52 week low.
Binod Modi, Head of Strategy at Reliance Securities, said: “Domestic stocks rebounded strongly today, strong earnings from 4TFY21 and the first signs of a decline in the second wave of daily records have boosted confidence among investors. investors. A strong recovery in financials followed by autos and metals supported the market recovery today. Notably, defensive sectors like IT, Pharmaceuticals and FMCGs looked weak today. “
Today’s strong rebound in the domestic market has helped investor wealth to rise by nearly 3 lakh crore in a single day, Modi also noted.
IndusInd Bank, State Bank of India, ICICI Bank, HDFC Bank and Axis Bank were among the top winners of the Nifty 50, while Cipla, L&T, Bharti Airtel, SBI Life and Nestle India were among the main laggards.
Finance bounces back while pharma lags
All sector indices, with the exception of Nifty Pharma and Nifty Media, were in the green as financials and banking stocks led the rally. Metals and auto inventories also rebounded.
Nifty Bank rose 4.01% while Nifty Financial Services rose 3.20%.
Nifty Private Bank and Nifty PSU Bank gained 3.80% and 3.81% respectively. Nifty Auto rose 1.95%. Nifty Metal rose 2.29 percent.
Nifty Pharma, however, was down 0.19 percent.
All the larger indices were also in the green.
Nifty Midcap 50 rose 1.87% while Nifty Smallcap 50 rose 1.04%. The S&P BSE Midcap rose 1.63% while the S&P BSE Smallcap rose 1.61%.
Notably, the volatility index softened 3.25% to 19.61.
“It was a widespread rally today, in which mid-cap and small-cap stocks also saw a big rally,” Modi said.