Monday was an interesting trading session with bulls taking the hold of the market. Is the recovery here to stay or will the bears keep the clutches to themselves?
The impressive comeback seems to be here. The markets 'greened' up today, the kind of opening bulls would have wanted to be for this week. The Benchmark indices closed almost a percent higher, most of the sectoral indices, the Mid Cap and the Small Cap indices following the gains. PSU Bank and Realty indices stood exceptionally out with leading gains of 2.20% and 1.85% respectively.
These gains well reflect the indicating optimism in wider markets.
Public sector bank shares drove the market's upward swing after record Q1 performance by State Bank of India (SBI). The Nifty PSU Bank index surged 2.20%, with SBI gaining 2.38%. Other prominent sectoral movers were auto, realty, and healthcare stocks:
On a noteworthy note, the Nifty Realty index rose 1.85%, and Nifty Auto and Nifty Pharma both gained about 1%. The sole major laggard was the Nifty Consumer Durables index, which fell 0.72%.
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Of the BSE-traded stocks, 2,223 advanced while 1,886 fell, highlighting supportive market breadth. The top volume buzzers of the Nifty 500 were Doms Industries, HBL Engineering, and PG Electroplast. Defence stocks (Cochin Shipyard, BEML, Bharat Dynamics) also reported strong gains in the meantime.
Market strategists point out that the strong close above 24,500 on the Nifty is an indication of fresh buying interest after recent corrections. With speculations of foreign institutional investors becoming net buyers and firm corporate commentary, the outlook for Indian equities continues to be positive in the near term. Investors are, however, recommended to monitor continued global developments, earnings releases, and domestic macro data for further indication.
India's stock exchanges began the week in a positive way, creating an encouraging tone for the balance of August.
