Market bulls made a smart comeback on Dalal Street on Monday as brisk buying in Reliance Industries, Bajaj twins, L&T, and Infosys helped benchmarks recoup losses.
Indices started gap-down amid profit booking with the frontline S&P BSE Sensex and the Nifty50 dropping to lows of 51,936 and 15,606, respectively. However, positive cues from global peers, coupled with healthy buying in IT, PSU Bank, select pharma and FMCG counters, and RIL, helped the indices end the session in the positive territory.
The frontline Sensex index fluctuated 655 points intra-day before settling 77 points, or 0.15 per cent, higher from previous close at 52,551 levels. The Nifty50 index, meanwhile, settled at 15,812 levels, up 13 points or 0.08 per cent. India VIX index rose 4 per cent on the NSE today, suggesting high volatility in the markets.
In the broader markets, the BSE MidCap index ended the day in the red, down 0.7 per cent, amid steep losses in Adani Group stocks and BHEL while the BSE SmallCap index closed 0.2 per cent lower.
Among individual stocks, shares of Adani Group companies rebounded from their respective intra-day lows on Monday after the company clarified that the demat accounts of three foreign funds - Albula Investment Fund, Cresta Fund and APMS Investment Fund - holding shares in group companies 'are not frozen'.
The stocks of all six listed Adani Group companies -- Adani Enterprises, Adani Ports, Adani Power, Adani Transmission, Adani Green Energy and Adani Total Gas -- came under pressure in morning deals as they fell up to 25 per cent in intra-day trade on report that National Securities Depository Ltd (NSDL) has frozen accounts of the aforementioned FPIs that own stake in four of these group companies.
However, the Group said in a statement that given the seriousness of the issue and its consequential adverse impact on minority investors, they requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the aforesaid funds, and have received their written confirmation, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen.
Besides, shares of Bharat Heavy Electricals Limited (BHEL) slipped 18 per cent to Rs 62.55 on the BSE in intra-day trade on Monday after the company reported a lower-than-expected set of numbers for the quarter ended March 2021 (Q4FY21). The shares, however, settled 11 per cent lower on the BSE.
Shares of Lupin also dipped 5 per cent to Rs 1,173 on the BSE in intra-day trade after the pharmaceutical company said it has received a Warning Letter for its manufacturing plant in New Jersey. However, Lupin said the company does not believe that the warning letter will have an impact on disruption of supplies or the existing revenues from operations of the facility.
Lastly, shares of Godawari Power & Ispat hit a new high of Rs 1,508 after rallying 20 per cent on the BSE in intra-day trade, after the company’s shareholders approved the proposal for divestment of its shareholding in Godawari Green Energy (GGEL). The stock was trading higher for the seventh straight day and has zoomed 53 per cent in the past three trading days.
Sectorally, the Nifty PSU Bank index ended the day as the top gainer on the NSE, up 1 per cent, while the Nifty Realty index closed as the worst performer, down 1.4 per cent.
In the primary market, the three-day IPO of Shyam Metalics sailed through on the very first day with a little over 100 per cent subscription till about 4 PM.
However, the IPO on Sona Comstar failed to garner warm reception and has been subscribed just 8 per cent so far on Day 1.
On the economic front, India's wholesale inflation hit a record high of 12.94 per cent in May from 10.49 per cent in April due to low base and a continued rise in fuel and commodity prices, data released by the government showed.
European shares hit a record high on Monday as investors bet on global central banks sticking to an accommodative stance on monetary policy even as the post-pandemic economic recovery gathers pace.
The pan-European STOXX 600 was up 0.3 per cent, Germany's DAX hit an all-time high, while the UK's FTSE 100 scaled its highest since February 2020 ahead of a decision by the government on whether to delay England's reopening from a third national lockdown.
In Asia, Japan's Nikkei gained 0.74 per cent, and South Korea's Kospi added 0.09 per cent. China and Australian markets were shut for holidays.
Meanwhile, futures of all three main Wall Street indices indicated a positive start later in the day.