Nifty ends at 18,000 level; Sensex jumps over 700 points as PSU Bank stocks gain, Smallcap outperforms
IndusInd Bank, SBI and Hindalco industries emerged as the top gainers from the Nifty 50 index
Market update at 3.30 PM: Indices closed on a higher note on what can be called as a strong short covering rally on Monday. NSE Nifty 50 index climbed 1.17 per cent to close at 18,000 level while S&P BSE Sensex rose 721 points. Nifty Midcap and Nifty Smallcap surged 2.72 per cent and 3.81 per cent respectively.
All the sectors except Pharma closed positively, with PSU Bank index surging over 7 per cent. Strong buying interest was seen across fundamentally strong Smallcap stocks.
IndusInd Bank, SBI and Hindalco industries emerged as the top gainers from the Nifty 50 index while Cipla, Divi’s Laboratories and Dr Reddy’s Laboratories were the top losers.
The short covering rally is certainly a relief for the bulls, while close attention shall be on the COVID updates coming from China to analyze the pandemic situation
Market update at 11.50 AM: Indices have seen strong short covering rally as NSE Nifty 50 index soars over 1 per cent to trade at 18,000 level while BSE Sensex has jumped over 650 points. Nifty Midcap and Nifty Smallcap have risen 2.50 per cent and 3.5 per cent respectively.
PSU Banks, media and metals are the frontrunners in the rally while profit booking is seen across pharma stocks.
About 1,776 stocks are advancing as against 260 stocks that are declining. This indicates positive market breadth.
Market update at 9.30 AM: The indices are off to a promising start as NSE Nifty 50 index has climbed 0.71 per cent to trade above 17,900 levels while Sensex has jumped over 350 points. Strong buying is seen across midcap and Smallcap stocks.
PSU Banks are the leaders in the rally and India VIX currently trades flat.
Pre-market update: The Wall Street ended on a higher note ahead of Christmas on Friday as market heads into the long weekend. Nasdaq gained 0.21 per cent while Dow Jones climbed 176 points. In the lukewarm trading day, the Asian markets have opened on a cautious note and trends on SGX Nifty indicate a postive opening of about 20 points.
The rise of COVID cases in China takes the centre stage as it reports over 37 million new cases in a day and many countries are now imposing travel curbs and restrictions across public spaces to tame the virus.
Oil jumped over 3 per cent after Russia reportedly decided to cut oil production in response to capping of oil prices.
In the last trading session, the FIIs sold to the tune of Rs 706 crore while the DIIs bought shares worth Rs 3,398 crore.
Nifty is expected to remain volatile and price action at key support levels shall be keenly watched.