Stock market today: BSE Sensex surges over 500 points;; Nifty50 above 22,500
Stock market today: BSE Sensex and Nifty50, the Indian benchmark equity indices, displayed a strong performance on Monday, supported by gains in banking stocks, Reliance Industries Limited (RIL), and positive global sentiment. The market sentiment on Dalal Street was further bolstered by easing geopolitical tensions and robust corporate earnings reports.While most sectors witnessed gains, the auto and realty sectors experienced some weakness.
At 10:44 AM, BSE Sensex was trading at 74,246.16, up 516 points or 0.70%. Nifty50 was at 22,530.70, up 111 points or 0.49%.
Commenting on the market dynamics, Dr. V K Vijayakumar, Geojit Financial said, “The major negative in the market continues to be the sustained selling by FIIs, triggered by the high bond yields in the US. This selling by FIIs, in both equity and debt, will continue to weigh on markets so long as the US bond yields remain high, which, in turn, will be decided by the US inflation numbers.”
The latest US core Personal Consumption Expenditures (PCE) inflation data came in line with expectations, showing a year-on-year growth of 2.8%. As a result, US bond yields have slightly decreased, leading to a surge in US equity markets last Friday. While FII selling is expected to persist, it is likely to be less intense compared to recent days, he said.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, expects the market momentum to pick up again, with a focus on individual stocks due to the ongoing earnings season and sector rotation.
Technical analysis by Nagaraj Shetti of HDFC Securities indicates that the short-term trend of Nifty has reversed down after a significant rise from the lows. The immediate support level is at 22,300, and a breach below this could trigger further declines, he was quoted as saying by ET. The immediate resistance is at 22,625 levels.
In the United States, stock markets closed higher on Friday, boosted by strong performances from mega-cap growth stocks. This was driven by impressive quarterly results from technology giants Alphabet and Microsoft, along with moderate inflation data. Asian stocks also climbed, following the rally in US markets, as the inflation reading eased concerns about a more hawkish Federal Reserve. However, oil prices slipped in early Asian trading on Monday, reversing gains from Friday, as the US inflation data dampened prospects of interest rate cuts and strengthened the dollar, which hurts oil demand.
The US dollar was slightly weaker in early deals on Monday, thinned by a holiday in Japan, although the yen, euro, and sterling remained near the bottom of the ranges hit during Friday’s volatile session. In the Indian market, foreign portfolio investors (FPIs) were net sellers at Rs 3,408 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 4,357 crore. The rupee declined 10 paise to close at 83.38 against the US dollar on Friday, affected by a strengthening American currency overseas and a selloff in domestic equities.
Several companies, including UltraTech Cement, Trent, and UCO Bank, are set to announce their fourth-quarter earnings today. The net short position of FIIs increased from Rs 55,322 crore on Thursday to Rs 99,077 crore on Wednesday. Vodafone Idea is the only stock in the ban period under the F&O segment, which includes companies in which the security has crossed 95% of the market-wide position limit.