scorecardresearchMarket Wrap: Sensex, Nifty rise almost a percent; mid, smallcaps underperform; investors richer by ₹1.5 lakh crore

Market Wrap: Sensex, Nifty rise almost a percent; mid, smallcaps underperform; investors richer by 1.5 lakh crore

Updated: 17 Oct 2022, 04:13 PM IST
TL;DR.
  • Sensex closed 491 points, or 0.85%, higher at 58,410.98 while the Nifty50 closed with a gain of 126 points, or 0.73%, at 17,311.80.
Sensex extended gains into the second consecutive session. 

Sensex extended gains into the second consecutive session. 

Domestic equities extended gains into the second consecutive session on October 17, tracking gains in European stocks which rose on hopes of healthy corporate earnings.

Sensex opened 167 points higher at 57,752.50 and vaulted 529 points to an intraday high of 58,449. The index eventually closed 491 points, or 0.85%, higher at 58,410.98 while the Nifty50 closed with a gain of 126 points, or 0.73%, at 17,311.80.

Ending in the green, the market extended gains into the second consecutive session. 

Mid and smallcaps underperformed as the BSE Midcap index rose 0.26% while the Smallcap index settled with a slim gain of 0.09%.

The overall market capitalisation of BSE-listed firms jumped to 271.8 lakh crore from 270.3 lakh crore in the previous session, making investors richer by 1.5 lakh crore in a single day.

"Today's trading session was marked with intraday volatility, but gains in European markets helped strengthen the relief rally in local equities leading to gains in banking and power stocks. Traders are closely following the global markets trend and are taking a cautious route in order to avoid getting caught off guard in case of any fresh turbulence on the global front," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities observed.

The market also appears to be taking comfort from in-line quarterly earnings. Analysts point out that the risks of earnings downgrades are reducing.

"Due to buying on dips strategy, the domestic market is recovering well supported by a good start to Q2 earnings season by IT and banks. Broadly, even though the Q2 preview analysis forecasts a muted outlook, it is fairly factored in considering the consolidation of the last one month. While the outlook for Q3 results has been enhanced due to moderation in operation cost, forecasting a QoQ improvement in profitability and reducing the risk of earnings downgrade," said Vinod Nair, Head of Research at Geojit Financial Services.

As many as 114 stocks, including Sun Pharma, Ratnamani Metals, IDFC, Godfrey Phillips India, City Union Bank and Federal Bank, hit their fresh 52-week highs in intraday trade on BSE.

Shares of SBI, NTPC, Bajaj Finserv, ICICI Bank and Axis Bank ended as the top gainers while those of Larsen & Toubro, HCL Tech, Wipro, Tata Steel and Nestle ended as the top laggards in the Sensex index.

Among the sectoral indices, BSE Utilities (up 1.86%), Power (up 1.85%), Bankex (up 1.60%) and Financial Services (up 1.13%) ended with healthy gains.

Crude oil prices saw some gains but benchmark Brent Crude traded below the $95 a barrel mark. The rupee ended flat at 82.36 per dollar.

Technicals

"On daily and intraday charts, the market has formed a higher bottom and bullish candle, which is broadly positive. For short-term traders, 17,150 would act as a key support zone. Above the same, the index could move up to 17,400-17,500. Below 17,150, any uptrend would be vulnerable," said Chouhan.

Key market data

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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: 17 Oct 2022, 03:32 PM IST