Nifty Reclaims 11,600 Levels as the Market is Supposed to Match Global Cues.
On Wednesday, 16 September 2020, the Indian market rallied for the second consecutive day in a row supported by strong global cues and ahead of the outcome of the FOMC meeting.
Bulls helped Nifty reclaim 11,600 levels for the first time since February while the S&P BSE Sensex rallied over 250 points led by buying in heavyweights such as HDFC Bank, Infosys, RIL, ICICI Bank, and M&M.
If you talk about sector-wise performance, the top sectors which benefited in today’s market stand to be Realty, Auto, Healthcare, and IT stocks while in sectors like Utilities, telecom, public sector, and power stocks profit-taking was seen.
The broader markets outperformed benchmark indices. the S&P BSE Mid-cap index rose 0.2 percent while the S&P BSE Mid-cap index gained 0.4 percent – underperforming the benchmark indices.
Bajaj Auto, Dr. Reddy’s Laboratories, and M&M were among the top Nifty gainers.
Bharti Infratel, IndusInd Bank, and NTPC were among the top Nifty losers.
Stocks of the day
If talking about the stock sector-wise, the S&P BSE Realty index was up 2 percent, followed by the S&P BSE Auto index which was up 1.49 percent, and the S&P BSE Healthcare index gained 1.5 percent.
Profit-taking was visible in the S&P BSE Telecom space that was down 0.9 percent, followed by the S&P BSE Public Sector that fell 0.5 percent, and the S&P BSE Utilities fell 0.9 percent.
A volume spike of more than 100 percent was seen in LIC Housing Finance, Sun TV, Bajaj Auto, and NMDC.
The stocks like NMDC, Havells India, and LIC Housing Finance showed Long buildup.
The stocks like ITC, Sun TV, and UBL showed a short buildup.
More than 160 stocks on the BSE including Atul, Info Edge, RIL, Ipca Labs, and Paushal hit a fresh 52-week high.
Gold prices slipped by Rs 96 to Rs 51,797 per 10 gram in the Mumbai market on a rally in the stock market, and rupee appreciation. Participants await the US Federal Reserve's policy statement tonight.
Soybean futures declined to Rs 3,886.37 per quintal as participants trimmed their positions as seen by the open interest. Though Soybean new crops have started to hit the physical market, higher moisture in beans due to recent heavy rains in all the major soybean-producing states has increased demand for good quality soybean.
Cotton futures held firm at Rs 18,020 per bale as participants widened their positions, indicated by the open interest.Cotton futures prices rallied tracking a rally in ICE Cotton futures in the first session of the week.
Crude oil futures jumped to Rs 2,884 per barrel as participants increased their long position as seen by the open interest. Crude oil prices gained as Hurricane Sally disrupted US offshore oil production and sharp drawdown in US crude inventory.