scorecardresearchMarket Wrap: Sensex, Nifty extend gains into 8th consecutive session; investors

Market Wrap: Sensex, Nifty extend gains into 8th consecutive session; investors richer by nearly 14 lakh crore

Updated: 12 Apr 2023, 04:12 PM IST
TL;DR.

Sensex closed 235 points, or 0.39 percent, higher at 60,392.77 while the Nifty50 ended at 17,812.40, up 90 points, or 0.51 percent.

Sensex ended in the green on April 12.

Sensex ended in the green on April 12.

Domestic equity benchmarks the Sensex and the Nifty ended in the green for the eighth consecutive session on April 12 on gains led by banking, financial and IT stocks as investors awaited the fourth quarter results of IT major Tata Consultancy Services (TCS) and key macroeconomic data such as March retail inflation data of India and the US and February industrial production data of India.

The FOMC meeting minutes are also expected later today. All these will influence the mood of the market.

Global markets were mixed as investors awaited the US inflation data which will give a cue on when can the US Fed hit the pause button on rate hikes.

Sensex opened with a nominal gain of 22 points at 60,180.20 and rose 280 points in intraday trade to the level of 60,437.64.

The 30-share index closed 235 points, or 0.39 percent, higher at 60,392.77 while the Nifty50 ended at 17,812.40, up 90 points, or 0.51 percent. Mid and smallcaps also ended higher; the BSE Midcap and Smallcap indices rose 0.57 percent and 0.41 percent respectively.

In the last eight sessions of gains, the Sensex has jumped 4.8 percent while the Nifty is up 5.1 percent. The overall market capitalisation of BSE-listed firms has risen up to nearly 265.7 lakh crore from 251.9 lakh crore on March 28, making investors richer by 13.8 lakh crore in just eight sessions.

The market has been on an upward trajectory on hopes of healthy quarterly earnings for India Inc., the inflow of foreign capital, easing inflation and a pause on rate hikes by the Reserve Bank of India (RBI).

Some 112 stocks, including Bajaj Auto, Dr Reddy's Labs, Dalmia Bharat, Indraprastha Gas, Max Healthcare Institute and Zydus Lifesciences, hit their 52-week high in intraday trade on April 12.

Crude oil prices traded slightly higher ahead of the US inflation data. A dip in inflation will raise the possibility of a pause in rate hikes which can boost economic activity and give rise to oil demand as fuel. Brent Crude traded near the $86 per barrel mark.

The rupee ended with a mild gain of 4 paise at 82.09 per dollar as the greenback eased ahead of the US inflation numbers.

Top Nifty gainers and losers

A majority of Nifty stocks ended with gains. Among the 50 stocks, 34 ended higher.

Shares of Divi's Labs, Bajaj Auto and Adani Enterprises ended as the top gainers while those of Power Grid Corporation, NTPC and Nestle India ended as the top losers in the index.

PSU banks fall but pharma shine

Barring Nifty PSU Bank (down 0.64 percent), Media (down 0.58 percent) and FMCG (down 0.34 percent), all sectoral indices ended with gains.

Nifty Healthcare (up 2.55 percent) and Pharma (up 2.23 percent) clocked strong gains. Nifty IT and Auto rose up to a percent. Nifty Bank ended with a gain of 0.46 percent.

Expert's views on markets

Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the domestic market exhibited cautiousness in anticipation of the release of various economic data and the upcoming Q4 earnings season.

He said the IT sector drove the optimism in the market as investors await the earnings releases of sector majors.

Nair said that despite expectations of a cooling down of CPI inflation to below the RBI's upper tolerance level, the persistence of sticky core inflation remains a concern.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services underscored that the expectation of a healthy Q4FY23 earning season and FIIs being net buyers helped domestic indices to gain strength. He expects the momentum to continue.

Technical views on markets

Rupak De, Senior Technical Analyst at LKP Securities pointed out that the Nifty remained volatile during the day, with a predominately bullish bias.

"On the daily chart, the index has remained above the channel breakout, suggesting a positive reversal. The daily momentum indicator RSI is in bullish crossover and rising. The market will remain a buy on dips as long as the index remains above 17,700. On the higher end, the rally may extend towards 17,900/17,970," said De.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said on the daily chart, the Nifty has been stretching higher along the daily upper Bollinger band, which is now expanding, and this should be considered a positive sign.

The up-move in the frontline index has also been accompanied by participation in the broader market, which is also a sign of change in sentiment.

"The Nifty is currently trading above the 20-week moving average (17,789) and tomorrow if it manages to close above this level then it will further add to the bullishness. The best strategy to trade such an up-move is to hold on to the long positions with a trailing stop loss mechanism. For current long positions, one can keep it at 17,700, which is around today’s low. As the short-term target of 17,800 has been achieved we have raised it to 18,000," said Gedia.

Key market data

Article
Some of the most active stocks on BSE on April 12.
Article
Some of the top gainers on BSE on April 12.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 12 Apr 2023, 03:31 PM IST