Sensex surged by almost 300 points, with the Nifty surpassing 23,200, driven by gains in the IT and metals sectors. However, broader markets experienced a decline.
Sensex surged: The benchmark indices Nifty and Sensex opened strong on January 15, gaining for the second consecutive session, driven by the performance of IT and oil & gas stocks. However, the sentiment was dampened by the underperformance of pharma and healthcare stocks.
Global cues were mostly positive, with the Dow and S&P500 showing slight gains while the Nasdaq experienced a dip after a volatile session on Tuesday. Investors were closely monitoring inflation data and preparing for quarterly earnings reports to assess stock valuations and the strength of the U.S. economy.
By 9:30 am, the Sensex had risen by 291.80 points or 0.38 percent to 76,791.43, and the Nifty was up by 58.55 points or 0.25 percent at 23,234.60. Of the shares traded, 1,727 advanced, 471 declined, and 134 remained unchanged.
The market rebound can be attributed to oversold conditions, which often lead to such recoveries. However, investors should consider using this opportunity to adjust their positions during the ongoing recovery, especially in the midcap and smallcap segments, as suggested by Ajit Mishra, Senior Vice President of Research at Religare Broking.
“While the market is experiencing short-term relief, weak global cues, a decline in the rupee, low earnings growth, and FII outflows are still impacting sentiment,” stated Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services. He emphasized the need for caution in the overall outlook.
Experts predict that the market will see significant stock-specific movements in response to Q3 results. Companies that exceed expectations are being rewarded, while those falling short are facing consequences.
On Tuesday, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,132 crore, while domestic institutional investors purchased equities worth Rs 7,901 crore. The Nifty IT, Metal, and Oil and Gas indices all rose by 0.5 percent. Tech stocks rebounded after a recent selloff, with Wipro, Tech Mahindra, and Infosys gaining ground.
Conversely, the Pharma index dropped by 1 percent due to declines in Dr. Reddy’s, Lupin, and Glenmark. The FMCG index also fell by half a percent, driven by decreases in HUL, ITC, and Nestle.
The broader market experienced selling pressure, with mid- and small-cap indices each dropping by nearly 0.2 percent. Concerns over high valuations and weak market sentiment have caused these segments to decline by close to 10 percent since the beginning of the year.
In terms of individual stocks, Premier Energies shares surged by over 2 percent following significant orders received by its subsidiaries. These orders, totaling Rs 1,460 crore, include Rs 1,041 crore for solar modules and Rs 419 crore for solar cells. The supply of these modules is set to begin in May 2025.
The BSE shares have seen a steady increase for the third consecutive session, rising by 4 percent. This surge came after Nuvama initiated coverage on Asia’s oldest stock exchange, giving it a ‘buy’ rating and projecting a 31 percent upside. Analysts have praised BSE for its adaptability, noting that despite stricter regulations on index derivatives, the exchange is well-positioned for growth. Interestingly, the discontinued weekly contracts only accounted for 21.3 percent of BSE’s index option premium volumes, a significant difference from NSE’s 46.9 percent.
Shoppers Stop shares experienced a significant rally of over 8 percent following the announcement of a 41.7 percent increase in consolidated net profit for the third quarter, reaching Rs 52.2 crore compared to Rs 36.9 crore in the same period last year. Revenue also saw a growth of 11.5 percent to Rs 1,379.5 crore from Rs 1,237.5 crore, with EBITDA increasing by 13 percent to Rs 245.8 crore from Rs 217.5 crore.
In terms of market predictions, Nifty is expected to find support at 23,100, followed by 23,000 and 22,800. Immediate resistance levels are projected at 23,250, 23,400, and 23,500. According to Derivative Analyst Hardik Matalia from Choice Broking, Bank Nifty may find support at 48,500, 48,200, and 47,900, with key resistance levels at 49,000, 49,400, and 49,700.
The top gainers on the Nifty include HDFC Bank, SBI, NTPC, Reliance Industries, and Maruti Suzuki. On the other hand, HCL Tech, HUL, Infosys, TCS, and Titan were among the major laggards in the market.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.