Closing Bell: Bulls take control as Nifty ends near 16,300, Sensex adds almost 800 points; BFSI, IT stocks lead rally

Riding high on positive Asian markets and green opening for the Indian rupee, the domestic equity benchmarks Nifty50 and Sensex ended nearly one and half per cent higher on Monday. Extedning rally for the second consecutive day, the broader Nifty50 ended near 16,300 and the Sesex rose by almost 800 points to close near 54,500 

"The charge of bulls going berserk on a Monday with a broad-based rally is always a pleasant sight and what is more heartening is to see investors temper and reset their expectations for the quarter in line with the reset on the ground," said S Ranganathan, Head of Research at LKP securities. 

The 1.5% upmove seen today in the benchmark indices reflects the optimism behind the progress of the south-west monsoon as the BFSI & IT index led from the front with good support coming in from the broader market stocks, he added.  

"The Nifty index witnessed a strong breakout on the daily chart and closed above the level of 16,200. The RSI indicator has given a positive crossover on the daily chart which confirms the strength in the index. The index is likely to test the level of 16,600-16,800 level on the upside. The lower end support stands at 16100-15900 zone," said Kunal Shah, Senior Technical Analyst at LKP Securities. 

Led by benchmarks, Nifty Midcap and small cap too ended with the gain of almost one and half per cent each as India Volatility Index rested near 17-mark. Sectorally, FMCG, Healthcare and Pharma saw some profit booking, while all other sectors comfortably sat in the green. Among Nifty sectoral indices, the rally was led by IT stocks, followed by Metal, PSU Bank and others.

Hindalco led the Nifty50 pack, while IndusInd Bank rose the most on the 30-share Sensex. Infosys, Tech Mahindra, Bajaj FInserv, Axis Bank, Kotak Bank and Ultratech Cements were among other top gainers on the barometer indices.  

Britannia, Dr Reddy's, Mahindra & Mahindra, HDFC Bank, Maruti, Nestle India and Hindustan Unilever declined in an otherwise positive market.  

Indian markets opened on positive note following positive overall Asian markets, said Narendra Solanki, Head Fundamental Research -Anand Rathi-Investment Services.

"During the afternoon session, markets further strengthened as buying in IT, TECK and Capital Goods stocks were seen. Gains in frontline blue chip stocks such as Infosys, Tech Mahindra also helped to lift the markets. Sentiments were upbeat as a private report suggests that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers? income more than doubled in FY22 from FY18 levels," he added.

Strong US retail sales data scaled down the worries of an aggressive rate hike higher than 75bps providing the much-needed optimism to global equities, said
Vinod Nair, Head of Research at Geojit Financial Services.

"The European Central Bank, in its meeting this week, is set to increase its interest rates for the 1st time to contain record high inflation. On the domestic front, while IT and banking stocks were lifted by bottom fishing, realty stocks accumulated gains on improving business prospects," Nair added.