Sensex, Nifty gain 2% led by financials; midcap index hits record high

The market snapped its two-day losing streak in style, gaining almost 2 percent on May 21 pushed higher by banking names. At close, the Sensex was up 975.62 points, or 1.97 percent, at 50,540.48 and the Nifty gained 269.30 points, or 1.81 percent, at 15,175.30.

For the week, the Sensex and the Nifty added more than 3 percent each.

“Banks led the charge today buoyed by SBI earnings as bulls went on a rampage with stimulus hopes and transfer of surplus by the Central Bank to the GOI kept the street bullish. The broader market too witnessed good activity as the curve of daily corona cases displayed a declining trend,” said S Ranganathan, Head of Research at LKP securities.

All the sectoral indices ended higher with Nifty Bank and Nifty PSU Bank indices rising more than 3 percent each.

The BSE midcap index touched a new with nearly a percent gain, while smallcap index added 0.65 percent.

As expected, HDFC Bank, SBI, IndusInd Bank, ICICI Bank and Axis Bank were among the top gainers on the Nifty. Losers included Grasim Industries, Power Grid Corp, Dr Reddy’s Labs, IOC and Eicher Motors.

Stocks & sectors

The BSE bank index added 3 percent, while power and realty indices rose a percent each.

Among individual stocks, a volume spike of more than 100 percent was seen in Grasim Industries, SBI and Torrent Power.

A long buildup was seen in SBI, IGL and Mphasis, while a short buildup was seen in Havells, Gail and Grasim Industries.

More than 300 stocks, including HPCL, Gati and Pidilite Industries, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a strong bullish candle on the daily and weekly scale while forming higher top-higher bottom for the last three weeks.

“The Nifty has to hold above 15,050 zones to witness an up move towards 15,300 then life-time high of 15,431 marks, while on the downside, support exists at 15,000 and 14,900 zones,” said Chandan Taparia of Motilal Oswal Financial Services.