Equity benchmarks the Sensex and the Nifty snapped a three-day losing run on September 19 despite weak global cues.
Sensex closed 300 points, or 0.51%, higher at 59,141.23 while the Nifty50 closed the day at 17,622.25, up 91 points or 0.52%.
Mid and smallcaps, however, underperformed as the BSE Midcap index ended 0.16% lower while the Smallcap index closed 0.17% down.
Global markets were subdued as investors await the Fed meet outcome on September 21. As Reuters reported, "Shares slipped and the dollar firmed on Monday as investors prepared for a packed week of central bank meetings which will see borrowing costs rise globally, with the chance of a super-sized hike in the United States."
Shares of Mahindra & Mahindra, Bajaj Finance, Hindustan Unilever, SBI and Nestle ended as the top gainers while those of Tata Steel, NTPC, ICICI Bank, Asian Paints and UltraTech Cement ended as the top laggards in the Sensex index.
Among the sectoral indices, BSE Metal and BSE Telecommunication fell over a percent each. Realty and Capital Goods fell up to a percent. In contrast, BSE FMCG and Auto rose about a percent each.
"While the undertone of the market remained volatile, a strong relief rally after the recent slump helped benchmark indices to rebound. While European markets and most of the Asian pack continued their downward spiral, the underperformance of the Indian markets last week prompted investors to buy the beaten-down stocks," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Nearly 200 stocks, including IndusInd Bank, Ambuja Cements, Bank of Baroda, Karnataka Bank, Escorts Kubota and Mishra Dhatu Nigam, hit their 52-week highs in intraday trade on BSE.
Crude oil prices traded lower; Brent Crude was below the $90 a barrel mark around 3:45 pm. The rupee slipped about 3 paise to end at 79.77 per dollar.
Ajit Mishra, VP - Research, Religare Broking expects choppiness to continue amid weak global cues.
"It’s prudent to place positions on both sides. Banking and financials are doing well on the expected lines and we see selective buying in auto and FMCG also on dips. On the flip side, mostly stocks from the IT and pharma space trading with a negative bias. Participants should align their positions accordingly," said Mishra.
Nifty opened at 17,540.65 against the previous close of 17,530.85 and touched intraday high and low of 17,667.20 and 17,429.70 respectively.
Chouhan pointed out that the Nifty found support near 17,450 (which is double the bottom support level) and bounced back sharply to hover between 17,580-17,665.
"If the index trades above 17,550, the pullback formation is likely to continue. Above this, the index could touch the 20-day SMA level at 17,675. On the further upside, the index may rally up to 17,800. On the flip side, below 17,550, the index could retest 17,450- 17,400 levels.
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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.