Sensex soars 556 pts, Nifty tops 19,400; Metal index rallies 3%, Auto 2%

Closing Bell on September 1, 2023: In the broader markets, the BSE MidCap and SmallCap indices added 0.75 per cent each

Stock market highlights: Equity markets picked pace during the second half of the session amid a broad-based rally. The S&P BSE Sensex soared 556 points, or 0.86 per cent, to settle at 65,387 levels on Friday. The Nifty50, meanwhile, reclaimed the 19,400-mark to end at 19,435, up 182 points or 0.94 per cent.

Jio Financial Services, NTPC, ONGC, Tata Steel, Maruti Suzuki, Hindalco, IndusInd Bank, Power Grid, Coal India, Tech M, LTI Mindtree, SBI Life, and UPL gained between 2 per cent 5 per cent at the bourses.

On the downside, only seven stocks on the Nifty50 and four on the Sensex settled lower. These included Cipla, Nestle India, Ultratech Cement, Sun Pharma, L&T, and HDFC Life.

In the broader markets, the BSE MidCap and SmallCap indices added 0.75 per cent each.

Sectorally, the Nifty Metal index surged 3 per cent, Auto index 1.65 per cent, and PSU Bank index 1.6 per cent.

4:02 PM

Comment :: 'Earnings delivery key for markets to sustain these valuations'

>> All eyes are on the progress of the monsoons and impact of the same on the rural demand. But, we must also keep in mind that with better irrigation techniques some of the dependence has reduced over the years.

>> In terms of valuations, equity markets are now trading above long term average valuations (on a one year forward P/E basis).

>> Earnings delivery would, therefore, be key for the markets to sustain these valuations.

>> Going ahead, some of the factors that the markets likely would watch out for include a) consumer demand in the run up to the festive season, b) outlook on the US rate cycle and c) the trajectory of inflation in India and globally

Views by: Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management

3:59 PM

Tech View :: 'Short-term outlook for Nifty has turned positive'

Nifty50
On the daily charts, we can observe that the Nifty has witnessed a sharp pullback from the 19,250 zone where the Nifty has been witnessing buying interest. The daily and the hourly momentum indicator has a triggered a positive crossover with a divergence which is a bullish sign from short term perspective.

On the weekly charts, the Nifty has closed in the green after falling for five consecutive weeks which indicates that the index has reached a zone from where buying interest has emerged. Considering the above parameters, we change our short term outlook on the index to positive. On the upside we expect the Nifty to target levels of 19,650. In terms of levels, Crucial support zone is placed at 19,330 – 19,300 and immediate hurdle is placed at 19,520 – 19,550.

Bank Nifty

Bank Nifty has also witnessed a sharp pullback. It has held on to its 20 week moving average support (44,144) and also closed in the green. We expect the pullback to continue over the next week as well. Daily and Hourly momentum indicator has a positive crossover which is a buy signal. We expect Bank Nifty to target levels of 45,000 from short term perspective.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:57 PM

Comment :: 'Robust domestic macro data buyoyed markets'

Domestic markets made significant gains, buoyed by favourable global cues, a higher-than-expected domestic manufacturing PMI, and positive GDP growth data. This robust economic outlook propelled key manufacturing sectors to lead the rally, while strong sales figures generated increased interest in auto stocks. The positive opening in global markets provided additional momentum for investor sentiment, particularly as US PCE inflation aligned with expectations.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

3:54 PM