Realty, metal stocks lift Sensex by 134 points, Nifty at 17,727
Bulls had a strong grip of the markets as 1,593 shares advanced while 536 declined and 114 remained unchanged.
Domestic benchmark equity indices started the month of November on a strong footing as Asian peers climbed on Monday after market participants digested the outcome of Japan’s election and fresh all-time highs for U.S. shares. In opening trades, the Sensex jumped 134 points or 0.23% to 59,441 while the Nifty 50 was quoting 17,727 higher by 56 points or 0.32%.
“The market went through a minor correction of above 3% in the Nifty during the last two trading days. The sell-off in the broader market was steeper with Nifty Midcap Index correcting 8% from the peak. The trigger for the correction has been the sustained FII selling during the last 9 trading days following the downgrading of India by some leading foreign brokerages like UBS and Nomura who are concerned about excessive valuations. The depository data shows FII selling in equity at Rs 13550 cr, the highest for a month, so far, in 2021. The massive FII selling appears to have overwhelmed the newbie retail investors who have been merrily buying every dip,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
An important factor that might influence the market is the new IPOs hitting the market this week. Heavy oversubscriptions in attractive IPOs are draining money from the secondary market. So, FII selling and IPOs have emerged as headwinds for the market in the short-term. Investors may wait for the market to consolidate before taking fresh investment decisions, added Vijayakumar.
Gainers & losers
Top gainers & losers on the Sensex.
Sectoral strand
Most sectoral indices on the NSE were trading in the green. The Nifty Realty index was standing tall surging 1.94% followed by the Nifty Metal index was shining bright with gains of 1.62%, Nifty IT index advanced 1.33% and Nifty Bank rose 1%. While Nifty Pharma, Nifty FMCG and Nifty Auto were up anywhere between 0.25-0.70%.
Broader markets
The broader markets outperformed benchmark indices as the BSE MidCap index up by 197 points or 0.78% to 25,475 and the BSE SmallCap index was trading at 28,242 advancing 259 points or 0.93%.
Bulls had a strong grip of the markets as 1,593 shares advanced while 536 declined and 114 remained unchanged.
Earnings today
HDFC, Tata Motors, IRCTC, Aditya Birla Capital, Allcargo Logistics, Bajaj Consumer Care, Bayer Cropscience, Carborundum Universal, Chambal Fertilisers, Devyani International, Dollar Industries, Graphite India, Gravita India, IG Petrochemicals, Indian Railway Finance Corporation, Lux Industries, Nilkamal, Parag Milk Foods, The Phoenix Mills, Privi Speciality Chemicals, Punjab & Sind Bank, Relaxo Footwears, Shipping Corporation of India, SPARC, VIP Clothing, Whirlpool of India, and Windlas Biotech will announce their September quarter earnings today.
Global market
Overseas, Asian stocks are trading mixed on Monday as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October.
China’s factory activity expanded at its fastest pace in four months in October, buoyed by stronger demand, but power shortages and rising costs weighed on production, a business survey showed on Monday. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.6 in October, its highest level since June.
Wall Street capped a choppy day of trading Friday with modest gains for stocks, nudging the major indexes to more all-time highs.
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