The domestic market remained in positive territory for the third consecutive session on July 29 with benchmarks the Sensex and the Nifty rising over a percent each on an all-round buying.
The risk appetite of investors remained upbeat as the weak US GDP data fuelled hopes that the aggressive rate hikes will slow down.
Sensex opened at 57,258.13 against the previous close of 56,857.79 and touched intraday high and low of 57,619.27 and 57,104.81 respectively.
The 30-share pack finally closed 712 points, or 1.25%, higher at 57,570.25 with 25 stocks in the green and 5 in the red.
Shares of Tata Steel (up 7.27%), Sun Pharma (up 5.45%), Bajaj Finserv (up 2.64%), IndusInd Bank (up 2.51%) and Asian Paints (up 2.38%) ended as the top gainers while those of Dr Reddy's Labs (down 3.96%), Kotak Mahindra Bank (down 0.97%), SBI (down 0.77%), ITC (down 0.13%) and Axis Bank (down 0.06%) ended as the laggards.
Nifty50 closed 229 points, or 1.35%, higher at 17,158.25. BSE Midcap and Smallcap indices rose 1.01% and 1.38% higher, respectively.
"The market is taking on a hope that slowing economic growth is going to result in a more dovish Fed moving forward. Investors will get updated looks at a key inflation reading and second-quarter employment costs on Friday, which could be key data points for the Fed as it considers its next move. Investors have also been navigating a mixed batch of earnings reports this week,” said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
Among the sectoral indices, the BSE Metal index jumped 4.59%, emerging as the top sectoral gainer. BSE Energy (up 2.41%), Basic Materials (up 2.30%) and Oil & Gas (up 2.21%) also clocked healthy gains.
Brent Crude traded near the $110 a barrel mark. The rupee rose 49 paise to close at 79.26 against the US dollar.
"Wall Street staged a robust recovery after a shaky opening due to a contraction in the US economy, as the market perceived that aggressive monetary policy will soon come to an end. This added optimism in the domestic market, and the rupee strengthened against the dollar increasing appetite for FIIs," said Vinod Nair, Head of Research at Geojit Financial Services.
Market clocked healthy gains in July. Sensex, Nifty and BSE Smallcap indices jumped 9% each in July while the BSE Midcap index clocked a gain of 11%.
The overall market capitalisation of BSE-listed firms jumped to ₹266.59 lakh crore from ₹243.74 lakh crore on June 30, making investors richer by ₹22.85 lakh crore in a month.
"With major events behind us, the focus would be on earnings and upcoming high-frequency data like auto sales, PMI numbers and GST collection figures for cues. We reiterate our positive view and suggest continuing with the “buy on dips” approach," said Ajit Mishra, VP - Research, Religare Broking.
On the technical front, the Nifty remains strong as the index gained for the third consecutive day. Besides, the index has sustained above the major short-term moving averages, indicating a positive trend.
"The daily RSI is in bullish crossover and rising. The trend is likely to remain positive over the short term. On the lower end support is pegged at 16,800-16,775. Resistance on the higher end can be seen around 17,400," said Rupak De, Senior Technical Analyst at LKP Securities.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.