Banking, IT heavyweights propel Nifty 50 and Sensex upward today
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Market Overview
The Indian stock market benchmarks, Sensex and Nifty 50, resumed their upward trend on Monday, October 14. This rally was led by significant gains in banking and IT heavyweights such as HDFC Bank and Infosys.
Influencing Factors
A decline in crude oil prices positively influenced market sentiment. Brent crude futures fell over 2% to $77.02 per barrel, while US West Texas Intermediate crude futures dropped 2.7% to $73.52 per barrel.
However, weak global cues somewhat limited the gains. A Reuters report indicated that China's recent broad economic stimulus promises over the weekend failed to inspire investors globally.
Market Performance
The Sensex rose by 592 points, or 0.73%, closing at 81,973.05. Meanwhile, the Nifty 50 gained 164 points, or 0.66%, to settle at 25,127.95. Leading the gains in the Sensex were shares of Tech Mahindra, HDFC Bank, Larsen & Toubro, ITC, and IndusInd Bank. Conversely, Maruti Suzuki, Tata Steel, Bajaj Finance, Axis Bank, and UltraTech Cement were among the top losers.
The BSE Midcap and Smallcap indices closed 0.28% and 0.06% higher, respectively. Notably, 249 stocks, including HCL Tech, Tech Mahindra, Persistent Systems, Trent, and Divi's Labs, hit their fresh one-year highs in intraday trade on the BSE.
Market Capitalization
The overall market capitalization of BSE-listed stocks increased to approximately ₹463.6 lakh crore from ₹462.3 lakh crore in the previous session, boosting investors' wealth by about ₹1.3 lakh crore in a single session.
Expert Insights
Ajit Mishra, SVP of Research at Religare Broking, noted that traders would react to the earnings results of heavyweights like Reliance Industries and HCL Tech in early Tuesday trades. He added that a recovery in major banking stocks, along with continued strength in IT, could drive further gains. However, he advised traders to maintain a stock-specific approach and consider hedged strategies, noting that the Nifty faces resistance at the 25,300 level.
On the technical front, Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, highlighted that the Nifty 50 has resumed its upward move towards 25,500 after a brief three-day consolidation. The hourly momentum indicator has given a positive crossover, signaling a buy.
Future Outlook
The positive momentum is expected to continue over the next few trading sessions, targeting 25,234 – 25,360. The support base has shifted higher to around 24,920. For the Bank Nifty, it broke out of a three-day consolidation on the upside and is now moving towards 52,500, aligning with the 20-day average. The support base for the Bank Nifty has also shifted higher to 51,400 – 51,500.
Disclaimer
Investors are advised to consult certified experts before making any investment decisions.
