Financial, FMCG stocks lift Sensex by 449 points; profit booking seen in pharma & IT

NEW DELHI: Banking stocks saw spirited buying while FMCG names were also in huge demand as blue chip indices rose for the second straight session on Monday over renewed stimulus hopes and claims of a Covid-19 vaccine by the year-end.

The benchmark indices have closed in the green 12 times in the last 13 sessions, which is indicative of a one-way rally. However, pharma and IT, two of the biggest drivers of this rally, saw profit booking.

The 30-share pack Sensex advanced 448.62 points or 1.12 per cent to 40,431.60. Its broader peer NSE Nifty climbed 110.60 points or 0.94 per cent to 11,873.05. Both indices are just 4 per cent away from their record highs.

"As we inch closer to the US elections, the Street is bracing towards volatile markets ahead. Despite profit booking in autos and pharma, the market ended firmly in the green as we saw spirited buying in financials with good support from the FMCG space," said S Ranganathan, Head of Research at LKP Securities.

Market at a glance:

• PSU stocks gain after govt directive consider buybacks
• Amber Ent surges 13% on govt ban on imports of finished AC
• DMart spikes 6% as co shows showed signs of recovery
• Jet Airways, DHFL hit upper circuit on getting buyers
• Federal Bank rises 8% after brokerages upgrade stock
• 104 stocks hit 52-week highs: OFSS, Amber Enterprises, JSW Steel, PI Industries and SRF among top names

Among blue chip names, ICICI Bank was the top gainer, up 5.11 per cent to Rs 416.35. It was followed by Nestle India, GAIL, Axis Bank, SBI, Indian Oil, HDFC, Coal India and ONGC that rose in the range of 3-5 per cent.

Divi’s Labs, which slipped 3.60 per cent to Rs 3,206.70, was the biggest loser among Nifty constituents. Eicher Motors, Hero Moto, Cipla, Bajaj Auto, TCS, Mahindra & Mahindra and Bharti Airtel gained in between 1-3 per cent each.
Broader market indices traded in line with their headline peers, as Nifty Smallcap rose 0.73 per cent and Nifty Midcap edged 0.77 per cent higher. Nifty 500, the broadest index on NSE, climbed 0.86 per cent.

Federal Bank, Aditya Birla Fashion Retail, BHEL, BEML, Kajaria Ceramics and Ujjivan Small Finance Bank were among the top gainers from mid and smallcap indices, rising in the range of 5-8 per cent.

Jubilant Foodworks, Mphasis, Glenmark Pharma, IndiaMART, InterMESH, Westlife and IDBI Bank were among the top losers from broader market space, falling 2-3 per cent.

Among sectoral indices on NSE, Nifty PSU Bank was the biggest gainer, up 4.17 per cent. It was closely followed by Nifty Private Bank and Nifty Bank that rose over 3 per cent. Nifty Financial Services also rose 2.53 per cent. Nifty Pharma and Nifty Media, however, slipped over 1.6 per cent each.

Market breadth was in favour of gainers as 1,490 stocks ending in the green, while 1,170 names settled with cuts. As many as 104 securities hit 52-week highs, mostly from the small cap space. Meanwhile, 62 names hit 52-week lows, mostly from the microcap space. About 235 stocks hit upper circuit limits and 224 lower circuit limits.

European markets were trading mixed. The UK’s FTSE was down 0.05 per cent while France’s CAC and Germany’s DAX rose 0.46 per cent and 0.08 per cent, respectively. Barring China and Thailand that fell 0.71 per cent and 2.02 per cent, respectively, all Asian markets ended higher. Japan and Taiwan were among top gainers, rising over a per cent each.

Let’s prepare for tomorrow:

• Q2 earnings: Bombay Dyeing, HUL, Granules India, Hindustan Zinc, IEX and Kajaria Ceramics were among the major names that will come out with their numbers on Tuesday.
• US Fed official’s speech: Federal Reserve Vice Chair Richard Clarida will speak on "U.S. Economic Outlook and Monetary Policy" before virtual American Bankers Association Convention, which will be eyed by investors.