Domestic equity markets witnessed healthy buying interest on March 6, making the benchmarks extend gains into the second consecutive session, amid positive global cues as investors await cues on rate hikes from Fed Chair Jerome Powell.
As per Reuters, the February jobs report is scheduled for Friday and Fed Chair Jerome Powell's testimony to congress is on Tuesday and Wednesday.
After opening about 200 points higher, the Sensex jumped nearly 700 points in intraday trade. The index eventually settled with a gain of 415 points, or 0.69 percent, at 60,224.46 while the Nifty ended the day at 17,711.45, up 117 points, or 0.67 percent.
Mid and smallcaps also clocked healthy gains. The BSE Midcap index rose 0.72 percent and the Smallcap index clocked a gain of 0.90 percent.
The overall market capitalisation of BSE-listed firms rose to ₹265.4 lakh crore from ₹263.4 lakh crore in the previous session, making investors richer by ₹2 lakh crore in a single session.
Oil prices slipped as China's lower-than-expected growth target for the year at around 5 percent dented optimism over robust demand. Brent crude traded near the $85 per barrel mark.
The rupee rose 5 paise to close at 81.92 per dollar, Bloomberg data showed.
Top Nifty gainers: Shares of Adani Enterprises (up 5.45 percent), Tata Motors (up 2.92 percent) and ONGC (up 2.56 percent) ended as the top gainers in the Nifty index.
Top Nifty losers: Shares of Britannia Industries (down 1.97 percent), Tata Steel (down 1.07 percent) and JSW Steel (down 1.04 percent) ended as the top losers in the Nifty index.
Barring Nifty Realty (down 0.52 percent) and Nifty PSU Bank (down 0.23 percent), all sectoral indices ended in the green.
Nifty Oil & Gas jumped 1.92 percent while the IT index rose 1.22 percent. Nifty Auto rose almost a percent.
Experts' views on markets
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities pointed out that the relief rally continued for the second straight session backed by a sharp upsurge in energy stocks like power, oil & gas that helped benchmark Sensex end above the psychological mark of 60,000.
"There is some amount of bargain buying seen after the recent selloff but the overall sentiment still remains that of caution with a negative bias as larger worries related to macro-economic woes and geo-political tension still pose a significant threat to markets," said Chouhan.
Vinod Nair, Head of Research at Geojit Financial Services observed the major concerns that prevailed in the market during the previous weeks were the fear of aggressive Fed policy action, which led to a rise in treasury yields and the US dollar, and the uncertainties surrounding Adani.
Nair said all of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate. Additionally, improved market sentiment due to the foreign bulk deal at Adani, the oversold stage of the domestic market, and FII buying helped sharpen the recovery.
Technical views on markets
Devan Mehta, Equity Research Analyst at Choice Broking pointed out that the Nifty maintained its 200-day exponential moving average (EMA) of 17,583 for yet another session, forming a respectable bullish candlestick pattern on the daily charts.
"In order to advance closer to the 18,000 level, the index must now surpass the 50-day EMA, which is close to 17,815 levels," said Mehta.
"Volume profile indicates the index has strong support around the 17,450-17,550 zone. Coming to the open interest (OI) data, on the Call side, the highest OI was observed at 17,800, followed by 18,000 strike prices while on the Put side, the highest OI is at 17,500 strike price," said Mehta.
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.