The benchmark indices snapped their four-day losing streak to end nearly 1 per cent higher on Monday. At close, the Nifty50 index was up 159 points, near the 17,700-level at 17,691. The BSE Sensex ended with a gain of 534 points at 59,299. The advance-decline ratio was at nearly 2:1 as out of the 30 Sensex stocks, 23 ended the day with gains.
The broader markets, too, ended the day in the positive territory, with the BSE Midcap and BSE Smallcap indices rising 1.51 per cent and 1.71 per cent, respectively. The smallcap index had hit an intraday higher of 28,715. Sectorally, all Nifty indices ended in the green with the Nifty Metal, Media, Realty and PSU Bank indices rising over 2 per cent each.
Meanwhile, the shares of sugar companies rallied up to 8 per cent on record exports and healthy outlook. India's sugar export rose 20 per cent to an all-time high of 7.1 million tonnes on the back of better demand and financial assistance from the government.
Coming to other stock-specific moves, the shares of Divi's Laboratories surged 7.8 per cent today after hitting a 52-week high level of 5,315. The pharma stock, which is trading as the top Nifty gainer, is in focus as the company is MSD's authorised manufacturer for Molnupiravir API. US-based pharma major Merck is known as MSD outside the United States and Canada.
Patel Engineering's stock resumed its gains, rallying 20 per cent. The company had bagged Rs 1,251 crore order on September 27. Tata Motors gained nearly 3% on business recovery hopes. Chemical companies rose across the board as reports suggest 25 per cent of China’s chemical production may be impacted.
That said, a strategic partnership with Eli Lilly failed to lift Cipla's shares, ending down 3 per cent. Cipla and Eli Lilly have entered into a strategic partnership in India to access Lilly's key diabetes products.
Going into trade on Tuesday, the market rally may continue as the market is back in action despite unfavourable global sentiments. According to Vinod Nair, Head Of Research at Geojit Financial Services, the momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand.
On the technical front, overall range is coming in between 17,300-18,000 zone and either side breakout will decide the final direction. RBI Monetary Policy Meeting is another key event that is being keenly watched by the market which is expecting no change. Lastly, stock-specific moves, global cues as well as news related to Covid-19 will be among other major triggers for investors.
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