Sensex gains 193 pts, ends above 53,000; Nifty at 15,880; Tata Steel up 5%

Realty and metal indices rose 2 per cent each while auto index ended in the red

Stock market updates: Equity markets resumed their upward journey after a one-day hiatus on Wednesday, as investors looked past overnight weakness on Wall Street and focused on stock-specific developments. 

The S&P BSE Sensex index jumped 193.5 points, or 0.37 per cent, to end the volatile session at a new closing peak of 53,055 levels while the NSE's Nifty50 shut shop at 15,880, up 61 points or 0.39 per cent.

Tata Steel, JSW Steel, Bajaj Finserv, Hindalco, UPL, Nestle India, HDFC, IndusInd Bank, and Adani Ports ended as the top gainers on the benchmarks, up between 1 per cent and 5 per cent. On the downside, Titan Company, ONGC, SBI Life, Maruti Suzuki, Shree Cement, and Reliance Industries were the top laggards, down up to 2 per cent.

In the broader markets, the BSE MidCap and SmallCap indices rallied 0.58 per cent and 0.38 per cent, respectively.

Sectorally, realty and metal indices rose 2 per cent each as unsold real estate inventory declined further in Q2CY21 and as Tata Steel's capex plans gave sentimental push to peer stocks.

Meanwhile, all other key sectoral indices gained up to 0.6 per cent each, except the Nifty Auto index, which slipped 0.07 per cent.

Global markets

US equity-index futures rose along with stocks in Europe as investors awaited minutes from the Federal Reserve's latest meeting for clues on policy makers' thinking on interest rates and stimulus. Bonds stabilized after a rally. The Stoxx Europe 600 Index climbed 0.6 per cent, led by gains in commodity sectors.

In Asia, stocks fell with Chinese tech firms in Hong Kong retreating after Beijing's cybersecurity probe of ride-hailing giant Didi Global Inc. Hang Seng declined 0.4 per cent, Japan's Nikkei tumbled 0.96 per cent, and South Korea's Kospi down 0.6 per cent.

5:54 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

On Tuesday, key Benchmark indices consolidated near 15850/52900, but the last hour recovery indicates further uptrend from current levels.  After a muted opening, the Nifty/Sensex slipped to intraday lows of 15779.70/52751.75 before reversing sharply thereafter. While key indices hovered in the range of 15800-15850/ 52820-52900, the last hour of the trade helped surpass the intraday hurdle of 15850/52900 which is broadly positive for the market.  Among sectors, strong buying was seen in the Metal and Reality stocks, whereas some intraday profit booking was witnessed in Energy and selective Auto stocks.

 

We are of the view that the larger market structure is still positive and likely to continue in the near future if the market succeeds to trade above 15850/52900. Technically, the 20-day SMA or 15750/52500 should be the sacrosanct level for the market. Above the same, the uptrend texture is likely to continue up to 15930-16065/ 53300-53550. On the other side, the uptrend would be vulnerable if indices close below 15750/ 52500 or below 20 day SMA.

5:43 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 15800. The market shows that the expected levels are likely to be in the range of 15800 and 15950, and it is going to be crucial for the short-term market scenario to sustain above the 15800 Nifty50 Index level. The momentum indicators like RSI and MACD have recovered from their respective oversold zone and support the upside move and indicating potential upside from the current market level.

5:30 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended higher after opening in the negative on July 7. Nifty opened in the negative and gradually inched up through the day to end almost at the intra day high. At close, the Nifty was up 61.40 points or 0.39% at 15879.70.

 

Volumes on the NSE were below recent averages. Among sectors, Realty and Metals gained the most while Oil & Gas, Consumer Durables and Energy fell the most. BSE midcap and smallcap indices ended marginally in the green.

 

Fitch Ratings on Wednesday cut India's growth forecast to 10 percent for the current fiscal, from 12.8 percent estimated earlier, due to slowing recovery post second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence.

 

Nifty has closed at the all time high on July 07. It is just shy of the intraday high of 15915. The current momentum can take the Nifty past the previous high. Sectoral rotation continues while volumes remain subdued. On falls, Nifty could take support at 15818, while on rises, once the previous high of 15915 is sustainably breached, it could rise towards 15970.  

5:15 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term uptrend status of the market remains intact and the market is inching closer to witness sharp upside breakout of 15915 in the next couple of sessions. Intraday consolidation could be expected in the subsequent session around the hurdle before the upside breakout. The next upside target to be watched post upmove is around 16100-16200 in a short period of time. Immediate support is placed at 15800.

4:57 PM

TECH VIEW :: We may see a good up move if Nifty sustains above 15,920

Nifty index closed on a positive note at 15,880 and formed a bullish candle on the daily chart.

The index is on the verge of giving a breakout from its "Ascending Triangle: pattern on the daily chart which will happen above 15,920 zone. As Ascending Triangle is continuation pattern by nature, we may see a good up move in the near term if the index sustains above 15,920.

Support for the index is coming near 15,830-15,780 zone & resistance is coming near 15,920-16,000 

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities

4:45 PM

MARKET STRATEGY :: Q1FY22 earning to provide some direction to the markets

In a highly volatile session, markets ended with gains of nearly half a percent. After a flat opening, the benchmark traded volatile in the first half however healthy buying in metals, realty and banking stocks in second half aided markets to inch upwards. Consequently, the Nifty ended higher by 0.4% at 15,880 levels. The broader markets, midcap and small cap, mood remained buoyant as it too ended in a positive range of 0.6-0.7%. On the sector front, the majority of the indices ended with decent gains, except for auto, energy and media.

 

In the near term, Q1FY22 earning is likely to provide some direction to the markets, in absence of any major triggers. So, we remain cautiously optimistic and believe any correction at this juncture should be considered healthy as investors will get the opportunity to invest in quality counters on dips. Meanwhile, investors will keep a close watch on global cues.

Views by: Ajit Mishra, VP - Research, Religare Broking

4:35 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets bounced back into the Green in afternoon trade led by Metal stocks. Cabinet Reshuffle today created interest amongst market participants as we saw some hectic activity in smaller private sector banks. Paper stocks too displayed strength in the broader markets

4:23 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Amid mixed global cues and ahead of Q1FY22 earnings data, domestic equity indices traded flattish with a positive bias towards the end of the day. Global markets traded mixed ahead of the FOMC minutes as investors preferred safe-haven bonds and dollars. Healthy pre-sale numbers boosted buying interest in realty stocks while metal stocks followed the trend

4:04 PM

Brent Crude up 1.5% today but trades below $77/bbl-mark

4:02 PM

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4:01 PM

IPO Update :: GR Infraprojects subscribed 1.65x till 4:00 PM on Day 1

3:59 PM

Sector of the day :: Realty stocks outperform; Sobha rallies 6%

3:57 PM

Sector of the day :: Nifty Metal index advances 2%; Tata Steel, JSW Steel top gainers

3:55 PM

Index contributors :: Financials, Asian Paints, Tata Steel lift Sensex

3:52 PM

Broader market :: BSE SmallCap index gains 0.38%