What happened with the market today

Equity indices soared to record highs with the benchmark Sensex rising over 400 points led by gains in metal, banking, and financial stocks. Bank Index witnessed the biggest gainer among the Index front. Finally, buying returned in the mid and smallcap segments. However, IT stocks wiped off early gains and closed with some profit booking.

Sensex jumped 403 points or 0.7 percent to close at a record high of 55,959; while the broader Nifty settled 128 points or 0.8 percent higher at a fresh peak of 16,625. Top gainers in the Nifty pack included Bajaj Finserv, Tata Steel, Tech Mahindra, Bajaj Finance, HDFC Bank, Hindalco, and SBI. Whereas, Nestle India, Infosys, HDFC, HCL Tech, Britannia, and Asian Paints were the major losers. Strong rebound in broader markets along with favorable global cues boosted market sentiment while rallying led by metal, banking, and realty stocks. Among the domestic factors, fall in pandemic cases, improved vaccination progress, and strong macro data added fuel to the market sentiment.

Moreover, the Government plans to raise Rs 6 Lakh Crore ($81 billion) from selling state-owned infrastructure assets over the next four years to help bolster the government’s finances and plug its budget deficit.  Among the global markets, the US market closed on a record high amid speculation that the Federal Reserve may delay scaling back its asset-purchase program and USFDA approval for Pfizer Inc.’s Covid-19 vaccine. Asian stocks were poised for their biggest two-day gain since early February, as Chinese technology stocks extended their rebound and investor attention turned toward reopening possibilities. 

The Nifty Bank index advanced 1.7%, driven by a 2.3% gain in HDFC Bank. The financial services index rose 1.4% led by Bajaj Finance and Bajaj Finserv. The Nifty metals index ended the session up 3%. Nifty Smallcap 100 and Nifty Midcap 100 ended the day 2% and 1.5% higher. Nifty Realty and Pharma Index gained 2% and 1% respectively while IT Index slipped 0.3%. The nifty Auto index gained nearly 1%. India Vix declined 3% to close at 13.18. Metal stocks witnessed bargain hunting after a fall in the last few sessions. Rising base metal price on LME (London Metal Exchange) and hope of improved demand lifted metal stocks. Iron ore surged on expectations of a recovery in economic growth, including additional support in China, which will boost demand for steel. Futures in Singapore rebounded 5% as a potential boost to the U.S. vaccination drive lifted sentiment across assets from stocks to base metals.

NMDC gained 5% to close at Rs155. Vedanta gained 5% to close at Rs286. Moody’s Investors Service upgraded its rating on senior unsecured notes issued by Vedanta Resources. National Aluminium surged 8% to close at Rs80. Tata Steel gained over 3% to close at Rs1405. SAIL, JSW Steel, and Jindal Steel gained between 1-4%. Banking and NBFC stocks, Bajaj Finserv climbed up by 8% to close to a record high of Rs16462 after the news that the company has received in-principle approval from the Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund. It has recorded a hefty volume of 12.74 lakh shares traded on NSE. Bajaj Finance surged over 3% to close to an all-time high of Rs6980. Other NBFC stocks like M&M Finance, Chola Finance, Muthoot Finance, Shriram Transport Finance, and PEL gained between 2-5%. Banking stocks like HDFC Bank gained over 2% to close at Rs1559. The company said that the bank would ramp up the issuing of credit cards.  Want to immediately start issuing 3 lakh credit cards per month.

PSU Bank major SBI surged 2% to close at Rs418. ICICI Bank, IndusInd Bank, and Axis Bank gained nearly 1-2%. Real Estate stocks witnessed fresh buying. Indiabulls Real gained 5% to close at Rs141. DLF gained 3% to close at Rs315. Prestige Estate gained 5% to close at Rs341. Both Sobha and Sun Tech Realty advance 2% each. Auto stocks witnessed fresh buying. Escorts gained 3% to close at Rs1296. Tata Motor, M&M, Bajaj Auto, and Hero Motocorp gained 1% each. However, Maruti declined marginally to close at Rs6803 after the news that the Competition Commission of India (CCI) imposed a Rs 200 crore fine for indulging in unfair business practices. Tech stocks like TCS, Infosys, and HCL Tech declined nearly 1% each on account of profit booking.  Among the mid-cap and small-cap stocks like GATI, Linde India, TD Power, JSL Hisar, Allcargo, Arvind Ltd, Tata Coffee, Sterlite Tech, NBCC, Rain Industries gained 8-18%.   

Technical Outlook: Nifty index opened gap up and after an early consolidation, it picked up with the support of 16500 zones and headed towards 16647 levels. It escalated throughout the day by forming higher highs on the lower time frames and closed with gains of around 130 points. It formed a Bullish candle on a daily scale with a long lower shadow indicates that declines are being bought. Now it has to continue to hold above 16600 zones to extend the move towards lifetime high territory of 16700-16750 zones while on the downside support is seen at 16500 and 16380 levels.