Key domestic equity indices ended slightly higher on September 9 even as global cues were positive after the dollar retreated against its major global peers.
Global stocks rose despite a 75 basis points rate hike and hawkish comments by the European Central Bank (ECB) on September 8.
Besides, Federal Reserve Chair Jerome Powell said on September 8 that the US central bank would continue hiking rates to tame inflation.
“We need to act now, forthrightly, strongly as we have been doing," Bloomberg quoted Powell saying so at the Cato Institute’s monetary policy conference in Washington. “My colleagues and I are strongly committed to this project and will keep at it."
Apart from positive global cues, weakness in oil prices and the rupee's gain also influenced the mood.
As per media reports, crude prices looked set for a second weekly decline amid concerns over demand due to aggressive interest rate hikes and consequent recession and China's Covid-19 curbs.
Brent Crude traded near the $90 a barrel mark while the rupee closed 13 paise higher at 79.58 per dollar.
Sensex opened at 60,045.75 against the previous close of 59,688.22 and rose 432 points to an intraday high of 60,119.80.
The 30-share pack finally closed at 59,793.14, up 105 points, or 0.18% while the Nifty50 closed the day at 17,833.35, up 35 points or 0.19%. Mid and smallcap indices performed broadly in line with the benchmark index; the BSE Midcap advanced 0.16% while the BSE Smallcap rose 0.18%.
Shares of Tech Mahindra, IndusInd Bank, Infosys, HCL Tech and Maruti ended as the top gainers in the Sensex index. Conversely, UltraTech Cement, Mahindra and Mahindra, Larsen & Toubro and Bajaj Finance ended as the top laggards.
Among the sectoral indices, the BSE IT index jumped 2% while Power and Utilities were among the indices that ended in the red, both falling about half a percent.
As many as 207 stocks, including ICICI Bank, ITC, IDFC, Mahindra and Mahindra, State Bank of India, Ambuja Cements, Apollo Tyres, Bank of Baroda and Concor, hit their 52-week highs in intraday trade on BSE.
For the week, the Sensex and the Nifty rose 1.7% each. The BSE Midcap index rose 1.9% and the Smallcap index moved higher by 2.5%.
The overall market capitalisation of BSE-listed firms jumped to ₹283 lakh crore from ₹278.5 lakh crore, making investors richer by ₹4.5 lakh crore in a week.
"The Indian markets were buoyed by falling crude prices and a decline in domestic bond yields. Given the lack of major domestic events, its global counterparts will influence the Indian market's sentiment. Across the globe, investors will be keeping a close watch on China’s Inflation numbers. The volatility in oil prices and USD-INR will be other important factors that may affect the market," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"Robust macro data points, healthy corporate earnings and above average monsoon are providing support to the market. Though the aggressive rate hikes by global central banks are likely to continue in the near term despite the fear of recession looming large, the Indian market is showing resilience as it benefits from the strong domestic consumption and China+1 strategy," Sneha Poddar, AVP – Research, Broking & Distribution, Motilal Oswal Financial Services, observed.
"Even FIIs have been enthusiastic about Indian Markets since August 2022, despite noise surrounding the global cues. FIIs have bought more than ₹20,000 crore in the last 40 days. Further, the fall in crude oil prices to seven-month lows aided domestic sentiments. Now it needs to sustain this momentum going forward to move further towards higher levels."
Technicals
Nifty has been in a range and it appears that 17,900 has become its near-term top as the index has failed to sustain this level in the last few weeks.
As per Ajit Mishra, VP - Research, Religare Broking, Nifty has been consolidating in a range of 17,300-17,800 zone for the last three weeks, after a phenomenal surge.
"The tone is still positive as we’re seeing rotational buying across sectors barring the IT pack. Indications are in favour of this consolidation to end soon and we expect Nifty to test the 18,100+ zone," said Mishra.
Mohit Nigam, Head - PMS, Hem Securities said significant resistance and support for Nifty50 are at 18,000 and 17,700 respectively.
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.
