Sensex 327 pts Higher, Nifty Tops 15,800; HUL Jumps 4%

Key benchmark indices, Sensex and Nifty, ended their 3-day losing run to end higher on Monday. The gains in equities coincided with ease in bond yields, where the returns on 10-year government securities fell to a one-month low of 7.35 per cent.

Led by FMCG and financials, the BSE Sensex gained 327 points, or 0.72 per cent, to settle at 53,235. The NSE Nifty50, on the other hand, closed at 15,835, up 83 points or 0.53 per cent.

HUL, Britannia Industries, IndusInd Bank, ITC, Power Grid, and ICICI Bank were the top gainers on the 50-pack index today, up between 2 per cent and 4 per cent. On the flipside, ONGC, Tata Steel, TCS, JSW Steel, and Cipla were the laggards, down up to 4 per cent.

In the broader markets, the BSE MidCap and SmallCap indices gained 0.8 per cent and 0.6 per cent, respectively. IDFC First Bank, Gujarat Gas, Trent, R Systems International, Jubilant Industries, Automotive Axles, and Alembic were the lead gainers, rallying up to 20 per cent.

Among sectors, the Nifty FMCG advanced 2.6 per cent, while the Nifty Metal slipped over 1 per cent.

Among stocks, Avenue Supermarts (DMart) rose 3 per cent. The company has reported a standalone revenue of Rs 9,806.89 crore in Q1FY23), up 94.9 per cent from Rs 5,031.75 crore reported in the same quarter last year.

Ashoka Buildcon also gained over 2 per cent after its joint venture (JV) bid emerged as the lowest (L-1) for the construction and maintenance of Rajiv Gandhi Fintech Digital Institute in Jodhpur.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Market movements this month are likely to be significantly influenced by the Q1 results starting with TCS’s results on 8th July. More than the actual numbers, the market will be focused on guidance. Similarly, in financials particularly banking, the market will be keen to know the trends in credit growth rather than the decline in treasury income, which is already known. The buoyancy in GST collections and June auto numbers indicate that economic recovery is gaining momentum, in spite of many headwinds, and this bodes well for the market’s performance in H2 FY23. In the present context of high near-term uncertainty, the best strategy for investors would be to buy high-quality large-caps in a calibrated manner and wait with patience.”

Global Cues

Tokyo stocks opened higher on Monday as investors took heart from gains on Wall Street while staying cautious over the economic impacts of inflation. The benchmark Nikkei 225 index was up 0.71 per cent, or 184.45 points, at 26,120.07 in early trade, while the broader Topix index was up 0.97 per cent, or 17.92 points, at 1,862.96.

Asian share markets started cautiously on Monday as a run of soft US data suggested downside risks for this week’s June payrolls report, while the hubbub over possible recession was still driving a relief rally in government bonds. The search for safety kept the U.S. dollar near 20-year highs, though early action was light with U.S. markets on holiday.

Wall Street bounced back to a sharply higher close in light trading on Friday as investors embarked on the second half of the year ahead of the long holiday weekend.