Bulls Are Back: Nifty Reclaims 24,600, Sensex Extends Gains with Metal and Healthcare Stocks Rallying
The Healthcare and Nifty Metal were the best performers on the Nifty. Bank Nifty slipped becoming the only index to trade in the negative
The bulls returned to power as the benchmark indices extended gains helped by a robust rally in metal and healthcare stocks. The development assumes significance as the markets have bounced back after five consecutive days of downfall.
At noon, the Sensex was up 0.82 percent at 80,695 and the Nifty was up 0.97 percent at 24,643. About 2,433 shares advanced, 909 shares declined, and 87 shares unchanged.
The broader markets continued their outperformance after the mid and smallcap index rallied over a percent each. The two have rallied 25 percent and 24 percent since the start of the year. Nifty has gained 14 percent over the same period.
The Healthcare and Nifty Metal were the best performers on the Nifty. Tata Steel, Hindalco and JSWSteel were the top performers on the index. The Auto, Infra, Pharma and Realty also joined the party, rising almost 2 percent each.
Experts suggest that some of the largecap pharma names have gone through a good consolidation phase in the last six months. Now, the market would be looking for sectors or stocks where the risk-reward ratio is more favourable. Banks were the only buzzkill, albeit falling marginally.
Fundamental Views
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the unique feature of the ongoing bull market in India is its ability to climb all walls of worry. The market has dismissed concerns related to elections, the Budget, and the correction in the US. The ‘buy on dips’ strategy, which has worked well in this rally, continues to hold. However, a valuation discrepancy persists, with large-caps being fairly valued and mid and small-caps highly valued. Long-term investors should exploit this discrepancy by buying quality large-caps during declines.
Technical View
“A decisive breach above 24,600 levels would once again improve the bias anticipating a further rise in the coming days to retest the previous peak zone of 24,850 levels,” Vaishali Parekh, Vice President of Technical research at Prabhudas Lilladher. “Sensex has closed below the 20 DMA level of 80120, and a decisive close below 79,200 will see some profit booking until the next important support zone at the 50 DMA level of 77,300, below which the trend will weaken. The support for the day is seen at 79,700 and 24,300 levels while the resistance is seen at 80,600 and 24,600 levels,” she added.
Key Nifty gainers
SBI Life Insurance, Divis Labs, HDFC Life
Key Nifty losers
ONGC, Axis Bank, Tata Consumer Products
Key Sensex gainers
Tata Steel, JSW Steel, Wipro
Key Sensex losers
Axis Bank, HDFC Bank, and Nestle India
Stock Moves
Cyient: Shares tanked 9 percent after investors were left disappointed with the company’s first quarter (Q1FY25) earnings for fiscal 2024-2025. The IT firm reported revenue and margin, which were far lower than analyst estimates. Additionally, the management also lowered its FY25 DET (digital, engineering and technology) revenue growth guidance sharply.
Ashok Leyland: The share price rallied almost 7 percent to hit a fresh all-time high despite a weak start to FY25. The commercial vehicle major reported an 8.7 percent decline in standalone net profit, which fell to Rs 525.58 crore from Rs 576.42 crore in the same period of the previous financial year.
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