An all-around buying pushed headline indices the Sensex and the Nifty higher by a percent on September 20 while global cues remained mixed as investors get ready for the rate hike by the US Fed on September 21.
Sensex opened 416 points higher at 59,556.91 and rose 965 points to hit the intraday high of 60,105.79. Eventually, the index closed 579 points, or 0.98%, higher at 59,719.74. The Nifty50 closed the day at 17,816.25, up 194 points, or 1.10%.
The BSE Midcap index outperformed Sensex by rising 1.65%. The smallcap index rose 1.01%.
Shares of Sun Pharma, Dr Reddy's Labs and Tata Steel ended as the top gainers in the Sensex index. On the flip side, shares of Nestle, ITC and Infosys ended as the top laggards in the index.
"The weakness of western markets did not affect the buoyant domestic market. The Indian market is not seemingly apprehensive of Fed policy. Buying on dips is the strategy being reinforced here," said Vinod Nair, Head of Research at Geojit Financial Services.
On the front of sectoral indices, BSE Healthcare and Consumer Durables rose more than 2% each. Realty, Metal, Bankex, Auto, Industrials, Telecommunications, Financial Services, Consumer Discretionary and Commodities, climbed more than a percent each.
More than 200 stocks hit their 52-week highs on BSE. Bharti Airtel, IndusInd Bank, ITC, Maruti Suzuki, Adani Ports, Cipla and Eicher Motors were among the stocks that rose to their 52-week highs in intraday trade.
"Relief rally continued for the second straight session, which is indicative that investors are finding local stocks attractive after every short-term correction. Even as there are talks of the global recession at some point, the Indian economy is holding up really well in times of uncertainty, which is prompting investors to bet on our growth story," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
The overall market capitalisation of BSE-listed firms jumped to ₹283.4 lakh crore from ₹280.6 lakh crore in the previous session, making investors richer by ₹2.8 lakh crore in a single day.
"Even the lagging IT & pharma stocks joined the rally, slowly emerging as a value pick for long-term investors. However, to sustain the trend, the global market needs to stabilise. It makes sense to be stocks and sector-specific in this unfavourable global economic scenario and highly premium valuation of India compared to the rest of the world," said Nair
Crude oil prices saw an uptick but remained below the $95 a barrel mark. The rupee inched up 2 paise to close at 79.76 per dollar.
Nifty opened at 17,770.40 and touched intraday high and low of 17,919.30 and 17,744.40 respectively. The index formed a hammer candlestick on the daily chart which suggests strength in the counter.
Rupak De, Senior Technical Analyst at LKP Securities pointed out that 17,900 has acted as resistance for the Nifty on the higher end. The trend is likely to remain positive as long as it sustains above 17,700. On the higher end, a move above 17,900 may induce a rally towards 18,100 and higher, said De.
Palak Kothari, Senior Technical Analyst of Choice Broking underscored that Nifty has given closing above 21 DMA (daily moving average) as well as the middle band of Bollinger which adds bullishness to the prices.
On the open interest (OI) front, the highest call OI was witnessed at 18,000 while on the put side, it was at 17,600 level. The hourly momentum indicator MACD traded with a positive crossover which suggests strength in the counter. The support for Nifty has shifted around 17,600 while on the upside, 17,950 may act as an immediate hurdle, said Kothari.
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