Market ends at 4-month high, Nifty reclaims 10,900; investor wealth surges by Rs 2 lakh crore

Extending their gains into the third consecutive session, Indian equity benchmarks the Sensex and the Nifty closed over four-month highs on July 17.

The Sensex ended the day 548 points, or 1.50 percent, higher at 37,020.14 and the Nifty settled with a gain of 162 points, or 1.51 percent, at 10,901.70.

The market gained strength towards the end of the session led by financials and energy stocks, even as global markets were lacklustre as a European Union summit to discuss a post-pandemic recovery fund was underway.

Vinod Nair, Head of Research at Geojit Financial Services, said globally, markets were banking on continued liquidity to ensure that the recent momentum does not stall.

He said Indian stocks were seeing earnings-specific moves while the ever-present possibility of another lockdown had done little to affect the sentiment.

In sync with the benchmarks, the BSE Midcap index also rose 1.55 percent but the BSE Smallcap index underperformed, closing with a gain of 1.11 percent.

The overall market capitalisation of BSE-listed firms rose to Rs 144.88 lakh crore on July 17 against Rs 142.81 lakh crore on July 16, making investors richer by Rs 2.07 lakh crore in a day.

Top Nifty gainers included BPCL, ONGC, Bharti Infratel, GAIL and Reliance Industries.

Top Nifty losers included Hindalco, Britannia Industries, Nestle, TCS and Dr Reddy’s Labs.

The market gained for the fifth consecutive week as the Sensex and the Nifty rose 1.2 percent each for the week. The Nifty Bank, however, snapped the four-week gaining streak, slipping 1.9 percent this week.

Stocks & Sectors

Barring BSE IT and Teck, which fell 0.86 percent and 0.42 percent, respectively, all sectoral indices ended with gains on July 17.

With a gain of 5.05 percent, BSE Oil & Gas index emerged as the top gainer, followed by the Energy index, which rose 4.06 percent.

Consumer Durables, finance and auto rose 2.81 percent, 1.94 percent and 1.79 percent, respectively, featuring among the top gainers.

A volume spike of 2,900 percent was seen in Escorts while SAIL and Equitas Holdings witnessed volume spikes of 1,900 percent. Mindtree saw a volume spike of 1,500 percent.

Long build-up was seen in stocks like BPCL, HPCL and ONGC. Short build-up was seen in stocks such as Britannia, Hindalco and Ujjivan Financial Services.

Over 300 stocks, including Indiabulls Real Estate, Suzlon energy, Edelweiss Financial Services, Graphite India and Hathway Cable & Datacom, hit their upper circuits on BSE.

Stocks in news

GAIL (India): The stock rose 4.34 percent after the Department of Telecommunications (DoT) withdrew a demand of over Rs 2.3 lakh crore.

HDFC Bank: The share price jumped 3.46 percent ahead of its June quarter results on July 18.

PTC India Financial Services: The stock jumped 10 percent after PTC India invited bids for selling the company’s controlling stake in subsidiary PTC India Financial Services.

Radico Khaitan: The share price rose 3.71 percent after MFs raised stake in the company to 13.30 percent in the June quarter from 11.03 percent in March quarter.

Granules India: The share jumped 7.36 percent after the company reported a 34 percent jump in consolidated net profit at Rs 111.4 crore against Rs 83.2 crore YoY.

Britannia Industries: The shares of the company fell 1.81 percent even as it reported a massive 117 percent year-on-year increase in consolidated profit for the quarter ended June 2020, driven by strong revenue and operational growth.

Technical View

The Nifty closed above 200-day moving average despite mixed global cues, backed by a rally across sectors, barring IT.

The index closed above 10,900 levels for the first time since March 6 and formed a bullish candle on the daily charts as closing was higher than opening levels.

But the index did not look that strong on the weekly chart as it gained 1.2 percent and formed a Hanging Man pattern on the weekly scale.

Generally, Hanging Man formation is an exhaustion sign, hence experts feel the Nifty has to hold 10,900 levels in the coming sessions to sustain bullish trend, which can take the index above 11,000-mark otherwise, it may see some consolidation.