Stock market today: The major benchmark indices, Sensex and Nifty, ended their 3-day losing run to finish higher on Monday. Gains in equities coincided with the ease of bond yields, where 10-year government bond yields fell to a one-month low of 7.35%.
Led by FMCG and financial institutions, the BSE Sensex gained 327 points, or 0.72 percent, to settle at 53,235. The NSE Nifty50, on the other hand, closed at 15,835, up 83 points or 0.53 percent.
HUL, Britannia Industries, IndusInd Bank, ITC, Power Grid and ICICI Bank were the biggest winners on the 50-pack index today, rising between 2 and 4 percent. On the other hand, ONGC, Tata Steel, TCS, JSW Steel and Cipla were the laggards, up 4 percent.
In the broader markets, the BSE MidCap and SmallCap indices gained 0.8 percent and 0.6 percent, respectively. IDFC First Bank, Gujarat Gas, Trent, R Systems International, Jubilant Industries, Automotive Axles and Alembic were the biggest winners, rising to 20 percent.
Among sectors, Nifty FMCG was up 2.6 percent, while Nifty Metal was down more than 1 percent.
Avenue Supermarts (DMart) shares rose 3 percent. The company has reported independent revenue of Rs 9,806.89 crore in Q1FY23), up 94.9 percent from Rs 5,031.75 crore reported in the same quarter last year.
Ashoka Buildcon also gained more than 2 percent after the joint venture’s (JV) bid emerged as the lowest (L-1) for the construction and maintenance of the Rajiv Gandhi Fintech Digital Institute in Jodhpur.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Market movements this month are likely to be significantly impacted by Q1 results, starting with TCS’s results on July 8. More than the actual numbers, the market will be focused on guidance. Likewise, the financial services market, especially banking, will like to know the trends in credit growth rather than the already known decline in Treasury bill income. The rebound in the GST collections and the June automatics indicate that the economic recovery is gaining momentum despite many headwinds, and bodes well for market performance in H2 FY23. In the current context of high near-term uncertainty, the best strategy for investors would be to buy high-quality large caps in a calibrated manner and wait patiently.”
Global clues
Tokyo stocks opened higher Monday as investors took heart from gains on Wall Street while remaining cautious about the economic fallout from inflation. The benchmark Nikkei 225 index rose 0.71 percent or 184.45 points to 26,120.07 in early trading, while the broader Topix index rose 0.97 percent or 17.92 points to 1,862.96.
Asian stock markets got off to a cautious start on Monday as a string of soft US data pointed to downside risks to this week’s June payroll report, while buzz about a potential recession continued to bring relief from government bonds. The quest for safety kept the US dollar close to a 20-year high, although initial action was light with US markets on vacation.
Wall Street bounced back to a sharp higher close in light trading on Friday as investors entered the second half of the year ahead of the long holiday weekend.
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