Markets break losing streak, Sensex surges 173 points, Nifty gains
Equity markets kicked off the week with gains, the first in the four trading sessions. The benchmark Nifty rose 68.7 points, or 0.61%, to close at 11,247.1 whereas the Sensex gained 0.46% or 173.4 points to close at 38,050.7.
Markets, which were trading range bound for most part of the day, saw a sharp surge during the last hour of trade after the European markets recovered from their losses.
During his Independence Day speech, Modi spoke about a road map for distribution of Covid vaccines and reiterated the plans to improve infrastructure of the country. That speech gave the investor sentiment a boost. Shares of NTPC rose 7.47% because of better-than-expected results by the state run power giant. The stock price closed at Rs 95 apiece. It also commenced production of fly ash, which, too, added to the stock’s gains.
G Chokkalingam, chief investment officer, Equinomics Research and Advisory, said, “The retail HNI category is feeling jittery about the prospects of the market and they are the ones largely taking cash calls, which is probably why one can see a stagnation the markets in the last few days.”
According to a report by Kotak Institutional Equities, the possibility of a major economic disruption has now reduced. In its report, the brokerage said, “The probability of major economic disruption is lower now, given increased confidence among the general public and governments because of high recovery rates, collective learning so far (simple precautions work) and steady progress on vaccine trials.”
Foreign portfolio investors pumped in $3.5 billion till August 14. On Friday, they sold stocks worth $25.11 million. Domestic institutional investors bought stocks worth $104.8 million on Friday.
According to data on the NSE, the futures and options segment on Monday saw a turnover of Rs 12.4 lakh crore, against the six-month average of Rs 14.9 lakh crore.
Big gainers on the Nifty were NTPC, Eicher Motors, Zee Entertainment, Hindalco and Bajaj Auto, up by 7.4%, 4.79%, 4.71%, 4.46% and 4.33%, respectively. Major losers were State Bank of India, Bharti Airtel, BPCL, Reliance Industries and Tata Motors, down by 1.55%, 1.47%, 1.28%, 0.93% and 0.72%, , respectively.