Domestic equities have continued to shrug off concerns over frothy valuations and even as signs emerge that ‘risk-on’ investments are seeing some unwinding, as was reflected in the dramatic sell-off in cryptocurrencies and global base metals overnight.
Nifty50 ended 0.5 per cent, or 78.70 points, higher at 14,563.45 points, and Sensex closed at 49,517.11, up 0.5 per cent, or 247.79 points.
In the broader market, aggressive risk appetite among investors was visible as Nifty Midcap 100 and Nifty Smallcap 100 ended 0.7 per cent and 0.1 per cent, respectively.
Here are the major movers in today’s trade:
Tata Motors bolts higher
Shares of the Jaguar Land Rover-maker shot up for the second successive day to take its two-day gains to over 20 per cent on the back of better-than-expected retail sales numbers for the December quarter by JLR. Brokerage firm CLSA Asia-Pacific said that it expects continued sequential volume growth at JLR.
RIL moves at last
After a rather dull beginning to 2021, shares of Reliance Industries came back to life with a sharp 3 per cent jump today. The stock was the biggest contributor to Nifty50’s gains.
The company’s stock soared nearly 10 per cent as investors are optimistic that the company will be the biggest beneficiary of the revival in residential real estate segment underway currently. DLF’s pan-India presence has made it an attractive bet as compared to companies that are regional leaders.
PSU Banks shine
Shares of state-owned lenders jumped sharply today despite the Reserve Bank of India suggesting that stress in these banks’ loan book may rise substantially by September 2021. Analysts suggested that investors are looking at PSU banks from a trading perspective, especially as exposure to real estate sector becomes healthier. The Nifty PSU Bank index rose 5.9%.
Broad-based rally carries on
The strong ‘risk-on’ sentiment among investors currently is epitomised in the fact that nearly 300 stocks hit their 52-week highs today, while only 14 stocks saw their 52-week lows on the National Stock Exchange.
Cash market turnover hits 2-month high
Turnover in NSE’s cash segment surged to a two-month high of Rs 81,884 crore, reflecting the increased participation in today’s gains in the market.
Who gave buy signal?
As many as 42 stocks on the NSE gave a buy signal based on MACD indicators, including prominent names like JSW Energy, Bank of India, Tata Coffee, Coal India, State Bank of India and Nippon Life India AMC.
What’s ahead for market?
The covering of short positions in the out-of-money Call options of Nifty50 expiring on January 28 suggested that traders expect the market’s positive momentum to continue in the remainder of the month with likely testing of the 15000-mark near the expiry of the January derivative series.
On technical levels, Shrikant Chouhan, who is a senior vice president – equity technical research at Kotak Securities, said that the Nifty50 index could test 14,650-14,700 level on Wednesday with any correction to be limited to 14,400-14,450. “There is a formation of bullish continuation, it will be unwise to bet against the trend at the moment,” Chouhan said.