Market benchmarks the Sensex and the Nifty clocked substantial gains on February 3, led by banking and financial heavyweights even as global cues were mixed and the bond market continued cheering Budget 2023 announcements.
Bond prices have rallied since the Budget after Finance Minister Nirmala Sitharaman raised capital expenditure outlay and lowered the expectations for the fiscal deficit target for the next financial year while keeping the government's borrowing programme in line with Street estimates.
India's 10-year bond yield fell by about 0.25 percent. Bond price and bond yield move in opposite directions. If the bond prices fall, the yields rise; if the bond prices rise, the yields fall.
While it was the Sensex's fifth consecutive day of gains, the Nifty rose after two days of losses. Losses in shares of Adani Enterprises and Adani Ports were among the key reasons weighing on Nifty.
While shares of Adani Ports rose over 5 percent, those of Adani Enterprises ended over 2 percent lower on NSE after the exchange along with the BSE put three of the Adani Group's companies under its short-term additional surveillance measure (ASM) framework.
As reported by Mint, the NSE has put Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements under their short-term additional surveillance measure framework.
ASM framework is a pre-emptive measure to safeguard investors' interests and enhance market integrity.
After opening 418 points higher at 60,350.01, equity barometer Sensex rose 973 points to hit the intraday high of 60,905.34 before ending at 60,841.88, up 910 points, or 1.52 percent. The Nifty50 closed the day at 17,854.05, up 244 points, or 1.38 percent.
Mid and smallcaps underperformed. The BSE Midcap index slipped 0.04 percent while the Smallcap index dropped 0.47 percent.
Crude oil traded volatile as investors sought more clarity on the demand scenario. Benchmark Brent Crude traded near the $82 per barrel mark.
The rupee jumped 35 paise to close at 81.84 per dollar.
Top Nifty gainers: Shares of Titan (up 6.51 percent), Adani Ports (up 5.61 percent) and Bajaj Finserv (up 4.96 percent) ended as the top three gainers in the Nifty index.
Top Nifty losers: Shares of Divi's Labs (down 12 percent), Adani Enterprises (down 2.19 percent) and BPCL (down 1.67 percent) ended as the top three losers in the Nifty index.
Banking and financial indices ended as top gainers. The Nifty PSU Bank index rose 3.07 percent, ending as the top sectoral gainer, followed by Nifty Financial Services and Nifty Bank indices both rising over 2 percent each.
On the flip side, Nifty Healthcare, Pharma, Oil & Gas and Realty indices ended up to a percent.
Experts' views on markets
"Markets are rising, assuming that we are in the last phase of the rate hike cycle as indicated by the Fed statement. Adani Group stocks revived post the confident statement by Total Energies, a large French energy company, raising the sentiment of the market. Pharma stocks have taken a beating as a result of weak third-quarter results," said Vinod Nair, Head of Research at Geojit Financial Services.
Technical views by experts
Rupak De, Senior Technical Analyst at LKP Securities said on the daily chart, the index has continued its range within the falling channel.
However, on the daily chart, the index has found support at the lower band of the falling channel before moving higher.
"In the near term, the index may continue recovering towards 17,950–18,000. On the lower end, support is visible at 17,450," said De.
As per Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities, for Nifty traders, the immediate hurdle would be the 20-day SMA (simple moving average) at 17,950.
"As long as the index is trading above 17,700, the pullback formation is likely to continue above which it could move up to 18,000. On the further upside, the index could move up to 18,150. On the flip side, below 17,700, weak sentiment is likely to accelerate and below this, the index could retest the level of 17,500-17,400," said the analyst.
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.