Stock market today: Healthy buying in FMCG, IT, pharma, realty, metals, and oil and gas stocks helped the domestic equity market settle higher for the third consecutive session on Tuesday (September 5). The Nifty Midcap 100 and Small Cap 100 indices also participated in the rally as both indices hit fresh record highs.

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At close, the S&P BSE Sensex stood at 65,780.26, up 0.23 per cent or 152.12 points, while the NSE's Nifty ended 0.24 per cent or 46.1 points higher at 19,575 levels.

In the Nifty 50 basket, 33 stocks advanced and 17 declined.

"The midcap segment is experiencing a significant upswing due to several key factors. Foremost among these is the robust economic outlook in India, which is fueling investor optimism. This positive sentiment is further amplified by a substantial influx of domestic liquidity actively seeking opportunities in the market," said Parth Nyati, Founder at Tradingo.

Nyati added that the broader market currently exhibits signs of being overheated, with a limited margin of safety in the short term. This heightened risk is underscored by the fact that any negative catalyst could potentially trigger significant profit-taking. It is noteworthy that the market appears to be disregarding the adverse impact of a weak monsoon at the moment.

"Following the improving economic health and domestic developments, investors turned to midcap and smallcap stocks as they are often more closely tied to economic growth than large-cap stocks and offer lucrative returns. Apart from that, improving liquidity in these stocks further fuels investors' confidence to invest more in midcap and smallcap sectors," said  Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.

TECHNICAL VIEW 

"Overall, the trend is positive, and dips are being bought into it, which is a bullish sign.  We expect the broader market participation to continue to outperform and sector rotation is helping Nifty to stay elevated. On the upside we expect the Nifty to target levels of 19650. In terms of levels, 19490 - 19470 shall act as a crucial support and 19650 – 19700 shall act as an immediate hurdle," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Gedia added Bank Nifty has witnessed a day of consolidation. It consolidated within a narrow range of 250 point range. Overall, we believe that this consolidation has come after a sharp run up which is likely to break out on the upside over the next few trading sessions. Momentum indicator has a positive crossover which is a buy signal. Thus, we can expect trending moves on the upside. On the upside, we expect targets of 44900 – 45000 from a short-term perspective.

 

NIFTY 50 STOCKS

In the Nifty 50 basket, 32 stocks advanced and 19 declined. Apollo Hospitals, Coal India, Sun Pharma, ITC, and BPCL were the major winners. On the flip side, UltraTech Cement, Dr Reddy's Laboratories, State Bank of India (SBI), Maruti Suzuki, and Eicher Motors were the top laggards.

BUZZING STOCKS

Oil India shares were up over 1 per cent after the board approved an equity contribution of up to Rs 1,738 crore in a joint venture company with Assam Gas Company Limited.

HP Adhesives ended nearly 3 per cent lower after the board approved the stock split.

Raymond shares settled over 9 per cent higher after global brokerage Jefferies and domestic broking firm Motilal Oswal Securities initiated coverage on the stock with a 'buy' rating. 

Nazara Technologies Ltd closed over 7 per cent higher after the board announced to considering raising funds. 

GLOBAL MARKETS 

Shares opened lower in Europe on Tuesday after a day of declines in most Asian markets.

Germany's DAX fell 0.4 per cent to 15,765.55 and the CAC 40 in Paris dropped 0.8 per cent to 7,224.88. 

Britain's FTSE 100 edged 0.1 per cent lower to 7,442.85. The future for the S&P 500 was down 0.3 per cent, while that for the Dow Jones Industrial Average lost 0.2 per cent.

In Asian trading, Hong Kong's benchmark fell 2.1 per cent, to 18,456.91, as investors sold real estate shares to lock in gains fuelled by recent government efforts to support the ailing property industry.

China Vanke lost 1.1 per cent, while Country Garden Holdings gave up 1 per cent. Hong Kong-based Sun Hung Kai Properties shed 2 per cent.

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