PM Modi#39;s pep talk at global event lifts sentiment; Nifty reclaims 10,800 levels

Indian market recouped the previous session’s losses on July 9 with the Sensex rallying over 400 points and the Nifty50 reclaiming 10800 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 408 points to 36,737 while the Nifty50 rose 107 points to close at 10,813 on Thursday.

Delivering the inaugural address at the India Global Week 2020, Prime Minister Narendra Modi said India is one of the most open economies in the world as he invited global investors to the country. India is already seeing green shoots of economic recovery as Indians have the spirit to achieve what is believed to be impossible, PM Modi said.

“The bulls were back in action after yesterday’s fall, thanks to upbeat global markets. The positive bias extended further, in response to the PM’s speech at the India Global Week Summit wherein he shared that we’re seeing green shoots of economic recovery and story of global revival will have India play a leading role,” Ajit Mishra, VP – Research, Religare Broking Ltd told Moneycontrol.

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Sectorally, the action was seen in metals, finance, banks, and energy stocks while profit-taking was visible in FMCG, power, capital goods, and oil & gas.

On the broader market front – the S&P BSE Midcap index rose 0.07 percent while the S&P BSE Small-cap index rose 0.21 percent, underperforming the benchmark indices.

Top Nifty gainers included names like Tata Steel, SBI, Bajaj Finance, and Hindalco Industries.

Top Nifty losers were Tech Mahindra, ONGC, Coal India, and Bharti Infratel.

Stocks & Sectors:

Sectorally, the action was visible in the S&P BSE Metal index that was up 2.1 percent, followed by the S&P BSE Finance index that rose 1.5 percent, and the S&P BSE Bankex closed with gains of 1.4 percent.

Selling pressure was seen in the S&P BSE FMCG index that was down 0.35 percent, followed by the S&P BSE Power index that was down 0.34 percent, and the S&P BSE Capital Goods index fell 0.32 percent.

Volume spike of more than 100% was seen in stocks like Hindalco, Escorts, Muthoot Finance, GAIL India, Ambuja Cements, and Century Textiles.

Long buildup was seen in stocks like Escorts, MGL, and M&M Financial Services.

A short buildup was seen in stocks like Tata Chemicals, Coal India, and Cummins India.

More than 100 stocks on the BSE hit their fresh 52-week high that included names like Bharat Rasayan, Dixon Technologies, L&T Infotech, PI Industries, and Escorts.

Stocks in news:

Yes Bank stock jumped over 2 percent after the country’s largest lender State Bank of India (SBI) said it will invest Rs 1,760 crore in the private lender.

Tejas Networks share price spiked 5 percent after Kedia Securities, owned by investor and trader Vijay Kishanlal Kedia, acquired 0.81 percent stake in the company for Rs 3.7 crore through open market transactions.

Escorts share price gained over 4 percent buoyed by the rural economy, which, as a sector, has largely remained unaffected by the COVID-19 pandemic.

Bharat Heavy Electricals stock gained 2 percent after the company successfully commissioned a 1.7 MW Solar PV Plant at Bina in Madhya Pradesh for the Indian Railways.

Aurobindo Pharma share price added almost 2 percent hitting 52-week high on July 9 after the company received US FDA nod for blood pressure drug, Verapamil Hydrochloride.

CG Power and Industrial Solutions stock fell almost 5 percent after Yes Bank sold 16.65 million shares, constituting 2.66 percent of the paid-up share capital, of the company in multiple tranches over the past few days, the lender said in a filing to stock exchanges.

Technical View

The index formed a bullish candle on the daily charts

The index has been respecting to its rising support trend lines and declines are being bought to form the higher market base.

The Nifty has to continue to hold above 10700 zones to extend its move towards 11000 then 11200 levels while key support exists at 10650 then 10550 levels, suggest experts.

India VIX fell down by 4.55% at 24.91 levels. Lower volatility suggests an overall bullish stance with buy on decline strategy could continue.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.