Indian Shares Surge Metals & IT Gain on China Stimulus and Fed Expectations

At the close, the Nifty 50 was at 19,528.80 up by 0.48%

The day’s trading session was marked by dynamic fluctuations in the stock market. It commenced with a promising start, only to later surrender some gains. However, a robust surge in purchasing activity in the middle of the session propelled the indices upward, culminating in a near-high closing.

In a remarkable streak, the benchmark indices displayed resilience for the second consecutive session. The Nifty comfortably maintained its position above the 19,500 mark, buoyed by enthusiastic buying across diverse sectors. Notably, the Nifty began the day on a positive note, sustaining its upward trajectory and concluding in the green with a 0.48 percent gain.

The Nifty’s sustained presence in the bullish zone underscores its ability to maintain levels above the channel breakout point, reflecting an enduring optimistic trend.

The market’s upward surge found support from various factors. The metals sector benefited from fresh stimulus support in China aimed at stabilizing its property sector, while information technology (IT) stocks surged on mounting expectations of the US Federal Reserve pausing its monetary tightening cycle.

Furthermore, favorable domestic macroeconomic data releases contributed to the market’s positive momentum. Simultaneously, an observable increase in the US unemployment rate has solidified expectations of a pause in interest rate hikes, reinforcing overall positive sentiment, bolstered by favorable global indicators.

Bank Nifty: Up by 0.32%

The Bank Nifty has displayed strong and sustained buying interest, continuing the positive momentum from the previous trading session. A notable achievement for the Bank Nifty is its ability to maintain a close above both the 20-day and 40-day moving averages, signaling inherent strength and resilience in the market.

The Bank Nifty commenced the day on a positive note with an opening in the green. It extended its gains, posting an increase of 0.32 percent and ultimately closing in the green at 44,578.30. In a similar vein, the BSE Sensex also had a positive day, registering a gain of 0.37 percent and concluding strongly at a high of 65,628.14.

In terms of sector performance, the Metal sector witnessed significant upward movement, surging by 2.28%. Within this sector, National Aluminium Company Ltd. exhibited remarkable growth, recording an impressive gain of 6.35%. Likewise, Steel Authority Of India Ltd. displayed robust performance, securing a gain of 5.83%.

On the flip side, the Consumer Durables sector experienced a decline of 0.22%. Within this sector, Bata India Ltd. faced a loss of -1.61%, while V-Guard Industries Ltd. also experienced a downturn with a loss of -1.26%.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included IDFC First Bank with a 5.78% increase, Punjab National Bank with a 3.13% increase, Bank of Baroda with a 2.78% increase, State Bank of India with a 1.06% increase, and HDFC Bank with a 0.62% increase. On the other hand, the biggest losers in the sector included AU Bank with a 1.30% decline, Axis Bank with a 0.78% decline, Federal Bank with a 0.49% decline, Kotak Bank with a 0.37% decline, and ICICI Bank with a 0.18% decline. These results suggest that some banking stocks performed better for the day.

Buzz

On Monday, the Indian rupee closed slightly weaker but still managed to outperform other Asian currencies, which depreciated following an increase in the yield of the 10-year US Treasury bonds on Friday. Despite some softening in US economic data over the past week, the US dollar displayed resilience.

The rupee concluded the trading session at 82.7475, experiencing only a minor change from its previous rate of 82.7150. Notably, its Asian counterparts faced a decline in value against the US dollar.

The tranquil trading session for the local currency can be attributed, in part, to the absence of cash demand for the US dollar due to the Labor Day holiday observed in the United States on Monday.

However, it’s important to keep an eye on the potential impact of rising crude oil prices on the rupee. Brent crude futures reached $88.43, marking their highest point in over six months on Friday. Given India’s reliance on oil imports, sustained oil price increases can exert downward pressure on the rupee’s exchange rate, affecting the country’s trade balance and current account.

Buzzing

Coal India Ltd. has certainly been making notable strides. As of its latest trading session, the company’s share price has surged by an impressive 4.64%, reaching Rs 247.90 from its previous closing value of Rs 236.90.

For those who have held onto Coal India Ltd. stock over the past three years, the rewards have been substantial. The stock has yielded a remarkable return of 73.24%, outperforming the Nifty Metal index, which provided investors with a still commendable 171.08% return during the same period. Moreover, when compared to the broader Nifty 100 index, Coal India Ltd. has delivered a 3-year return of 73.24%, surpassing the index’s return of 66.19%.

Another noteworthy aspect is the company’s annual revenue growth, which stands at an impressive 27.45%. This robust growth outpaces the 3-year Compound Annual Growth Rate (CAGR) of 12.19%.

Mahindra & Mahindra Ltd. has garnered significant attention in the financial markets. In the latest trading session, the company’s share price experienced a modest decline of -1.00%, settling at Rs 1,576.00 from its previous closing price of Rs 1,591.95.

However, when we look at the bigger picture, Mahindra & Mahindra Ltd. has been a strong performer over the past three years, delivering an impressive return of 145.13%. This far surpasses the return offered by the Nifty 100 index, which stood at 66.19% during the same period. This substantial return underscores the company’s ability to generate value for its investors.

Furthermore, Mahindra & Mahindra Ltd. has exhibited robust annual revenue growth, posting a notable figure of 34.43%. This growth rate outshines the company’s 3-year Compound Annual Growth Rate (CAGR) of 16.85%, showcasing its consistent expansion and market strength. Additionally, the company’s Return on Equity (ROE) for the year ending March 31, 2023, stood at a commendable 18.24%, a significant improvement over its 5-year average ROE of 10.72%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.64, and the market breadth was positive. The volatility index India Vix decreased by 3.54 percent to settle at 10.96 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1503
Decliners – 916
52Wk High –  257
52Wk Low – 15
High Band Hitters – 119
Low Band Hitters – 44
200d SMA – 18380
50d SMA – 19445
20d SMA – 19422

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.64%), Wipro (+4.35%), UltraTech Cement (+3.96%), HCL Technologies (+3.90%), and Jio Financial (+3.88%).

The top losers were M&M (-1.00%), Nestle India (-0.98%), ITC (-0.80%), Axis Bank (-0.78%), and Bajaj Finance (-0.58%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+2.28%), IT (+2.06%), Media (+1.59%), Realty (+1.15%), and Oil & Gas (+0.37%).

The top losers sectors were Consumer Durables (-0.22%) and FMCG (-0.13%).

The Nifty Midcap 50 was up by 0.59 percent, while the Nifty Small Cap 50 was up by 1.47 percent on the day.

The Nifty Midcap 50 index currently closed at 11,327.05, while the Nifty Small Cap 50 index currently closed at 5,793.80.

SECTORS – NOTABLE ACTION
METAL +2.28%
IT +2.06%
MEDIA +1.59%
CONSUMER DURABLES -0.22%
FMCG -0.13%

Stocks Ban List

(SEBI) F&O ban list  (IBULHSGFIN open at -198.60 and close at -196.25) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

INDIACEM, BHEL, and MANAPPURAM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19450 to 19580 is the Nifty 50 trading range.

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This article is only for educational purposes and is not an investment advice.