Equity market opened positive and picked up momentum amid positive global cues. The indices ended near the day's high with Nifty gaining 128 points (+0.8%) to close at 16,625. Sensex was up 403 points (+0.7%) to end at 55,959. Strong rebound was seen in broader markets after almost a week of underperformance. Both Nifty midcap 100/Nifty smallcap 100 gained 1.4%/2.0% respectively.Among sectors, except IT and FMCG, all other sectors ended in the green. Metals were biggest gainers up 2.9%. While Media, Pharma, PSU Bank, Private Bank, Financial Services, Auto, Realty, Oil & Gas gained more than 1%. India VIX closed at 13.19 levels with losses of 3.6%.
Globally, markets were positive after witnessing sharp fall in previous week. US markets touched new highs after full USFDA approval to Pfizer/BioNTech vaccine. European markets too gained on the back of positive marco economic data. Taking cue from its peers, domestic equity too had a positive day. Sentiment were also helped by the government's announcement of the National Monetisation Pipeline (NMP) on Monday through which the government will list out its infrastructure assets worth around Rs 6 lakh crore to be given to the private sector over the next four years on long term lease.
Buying interest was seen in majority of the sectors along with strong recovery seen in broader market today. Metals witnessed highest gain as Iron ore prices surged on expectations of recovery in economic growth, including additional support in China, to boost demand for steel. Pharma stocks too witnessed surge after NSE revised the criteria for the Nifty Pharma, expanding the index to include top 20 stocks based on the six-month average free-float market cap that are eligible for NSE F&O trading.
"Technically, Nifty formed a Bullish candle on daily scale with long lower shadow indicates that declines are being bought. We can now expect the index to extend the move towards life time high territory of 16,700-16,750 zones while on the downside - support is seen at 16,500 -16,380 levels," opined Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"Going ahead, global cues including the all-important US Fed's Jackson Hole symposium, will be closely watched for further market direction. Market has been witnessing a rotation from mid to large caps - a phenomena we believe could continue in the near term given the sharp outperformance of the broader market in the last 18 months. From the long-term perspective, the overall trend of the market remains positive led by the opening up of the economy, improving economic data points and pickup in vaccinations. Hence, investors can take advantage of the current volatility and build their positions in good quality stocks from medium to long term perspective whenever there are dips in the market," he added.
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