Positive global sentiment underpinned domestic market benchmarks the Sensex and the Nifty to end higher for the third consecutive session on September 12.
The overall market capitalisation of BSE-listed firms jumped to ₹285.3 lakh crore from ₹280.9 lakh crore on September 7, making investors richer by ₹4.4 lakh crore in three sessions.
The latest updates on the Russia-Ukraine war seem to have supported market sentiment. As per a Reuters report, Ukrainian forces rapidly advanced in Kharkiv province in Russia's worst setback since its Kyiv push was abandoned in March. This has given some hope that the Ukraine war, which started on February 24, 2022, may see some resolution soon and Europe may see some respite from the energy shock.
Sensex opened 119 points higher at 59,912.29 against the previous close of 59,793.14 and touched an intraday high of 60,284.55 rising 491 points.
The 30-share index closed the day with a gain of 322 points, or 0.54%, at 60,115.13 while the Nifty settled 103 points, or 0.58%, higher at 17,936.35. BSE Midcap and Smallcap indices rose 0.89% and 1% respectively, outperforming the benchmark.
The Sensex saw 18 stocks ending in the green and 12 in the red. Stocks of Titan, Axi Bank and Tech Mahindra ended as the top gainers while HDFC, HDFC Bank and Nestle ended as the top laggards.
As many as 214 stocks, including State Bank of India, Adani Ports, Apollo Tyres, Eicher Motors, Indian Hotels and Lemon Tree Hotels, hit their fresh 52-week highs in intraday trade on BSE.
Among the sectoral indices, BSE Realty emerged as the top gainer, rising 2.23%. BSE Basic Materials, IT, Consumer Durables and Teck rose more than a percent each.
"Firm global market cues triggered an upsurge in local benchmark indices as Sensex closed above the crucial 60,000 mark on buying in IT and realty stocks. In recent sessions, falling global crude oil prices and sliding US dollar index have encouraged domestic investors to increase their equity exposure," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Crude oil prices remained low amid concerns over subdued demand due to Covid curbs in China and a recession due to rate hikes. Brent Crude traded below the $95 a barrel mark.
The rupee rose 5 paise to close at 79.53 per dollar.
Technicals
Chouhan pointed out that the Nifty has formed a shooting star kind of candle formation near the important resistance level.
"A trend reversal is possible only after the dismissal of 17,850. Above the same, the index could touch the level of 18,000-18,100. On the flip side, below 17,850, selling pressure is likely to increase and could retest the level of 17,750-17,700,” said Chouhan.
Rupak De, Senior Technical Analyst at LKP Securities observed that the Nifty found resistance before ending with a gain of nearly 0.60%.
"The daily momentum indicator RSI remains in the green crossover. The short-term trend is likely to remain strong as long as it remains above 17,700. On the higher end, the Nifty has resistance at the 18,000-18,100 zone. Support is seen at 17,880/17,770," said De.
Key market data
Disclaimer: The views and recommendations given in this article are those of the analysts. These do not represent the views of MintGenie.
