Equity benchmarks the Sensex and the Nifty ended higher for the second consecutive session on October 6 in light of positive global cues ahead of US jobs data.
However, the gains were capped due to the rise in crude oil prices and the rupee’s fall. Crude oil benchmark Brent Crude traded near the $95 a barrel mark while the rupee fell 37 paise to close at 81.89 per dollar.
“Global shares rose as the dollar eased ahead of US jobs data that could offer a steer on the outlook for interest rates, while oil prices surged after OPEC+ agreed to cut output,” reported news agency Reuters.
Sensex opened at 58,314.05 against the previous close of 58,065.47 and touched the intraday high and low of 58,578.76 and 58,173.70 respectively. The index finally closed 157 points, or 0.27%, higher at 58,222.10 while the Nifty closed at 17,331.80, up 58 points, or 0.33%.
The overall market capitalisation of BSE-listed firms rose to ₹275.9 lakh crore from ₹273.9 lakh crore in the previous session, making investors richer by ₹2 lakh crore in a single day.
Mid and smallcaps outperformed the largecaps as the BSE Midcap and Smallcap indices rose 1.13% and 1.30% higher respectively.
Shares of Tata Steel, Larsen & Toubro, ICICI Bank, HCL Tech and Infosys ended as the top gainers while those of Bharti Airtel, Hindustan Unilever, IndusInd Bank, HDFC and Bajaj Finance ended as the top laggards in the Sensex index.
Among the sectoral indices, BSE Metal jumped 3.89% while Capital Goods and Realty rose more than 2% each.
"The Indian market is maintaining its resilience despite mixed cues from global equities and surging oil prices. Both domestic and foreign investors are supporting the rally,” Vinod Nair, Head of Research at Geojit Financial Services pointed out.
“The market was also bolstered by expectations on the Q2 results session, with improvement in sectors like metal, IT, and realty. However, the decision of OPEC to significantly reduce output has increased oil prices, which is slightly unfavourable for importers like India," Nair added.
More than 150 stocks, including Cipla, IDFC First Bank, Indian Hotels Company, Lemon Tree Hotels, Mazagon Dock Shipbuilders and Mishra Dhatu Nigam, hit their fresh 52-week highs in intraday trade on BSE.
Technicals
As per Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, the medium-term sentiment of the market is bullish.
“A fresh uptrend is possible only after the breakout of 17,425 and above this level, the index could hit 17,500-17,550 levels. On the flip side, below 17,425, the index could slip to 17,200-17,150,” said Chouhan.
Rupak De, Senior Technical Analyst at LKP Securities underscored that the Nifty started to gap up and remained volatile during the day.
“On the daily chart, a bullish island reversal pattern has been formed. The trend is likely to remain positive over the short term. On the lower end, 17,250 may act as crucial support. On the higher end, the index may extend its rally till 17,600-17,700," said De.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
