Foreign institutional investors have been extremely bullish on Indian equities but that has led the stocks to trade on frothy valuations. This, in turn, has made traders more nervous, as evident from the 9 per cent jump in the India VIX index.
The 30-share pack added 486.81 points or 1 per cent to 49,269.32. The index closed above the 49,000 level for the first time ever. Its broader peer, NSE Nifty, added 137.50 points or 0.96 per cent to 14,484.75.
“Improved outlook for third quarter earnings along with strong global cues helped Sensex breach the 49,000 mark. The rally in the market was led by the IT sector, backed by firm earnings results, however, small- and mid-cap stocks were under pressure. Hopes of a new US stimulus to be unveiled this week created an upbeat movement in Wall Street while profit-booking was seen in the European markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Tata Motors surges 13% amid buzz over partnership with Tesla
- TCS rises nearly 2% after beating Q3 Street estimates
- HCL Tech, Infosys and Wipro surge ahead of earnings
- Butterfly Gandhimathi Appliances gain 4% as Dolly Khanna buys stake
- Firstsource Solutions drops 3% after Rakesh Jhunjhunwala sells stake
Among the bluechip names, Tata Motors was the top gainer, rising 12.64 per cent. HCL Tech, Infosys, Wipro, HDFC, Bajaj Auto, Maruti Suzuki, GAIL and Tech Mahindra were other major gainers.
“Going forward, stock-specific volatility would remain high as earnings season would gain pace. We reiterate our positive yet cautious stance on markets and advise aligning positions according to the prevailing trend.”
Losers among Nifty constituents were led by Tata Steel, which fell 2.55 per cent. Adani Ports, Bajaj Finance, Bajaj Finserv, Reliance Industries, Hindalco and Shree Cement were others that ended in the red.
Broader market indices closed with cuts, underperforming their larger peers. Nifty Smallcap slipped 0.04 per cent and Nifty Midcap fell 0.24 per cent. Nifty 500 — the broadest index on NSE — rose 0.68 per cent.
HEG Infra, Bajaj Electricals, Indiamart Intermesh, Dhani Services, Mphasis and Ashok Leyland were the top gainers from mid and smallcap indices, climbing in the range of 3-7 per cent.
Shriram Transport Finance, RBL Bank, Zee Entertainment, Dixon Technologies, Kalpataru Power and Chambal Fertilisers were major losers from broader market space, falling in the range of 3-4 per cent.
The sectoral matrix was mixed on NSE. Nifty Media was the top loser, down 1.54 per cent, followed by a 1.5 per cent drop in Nifty PSU Bank. Meanwhile, Nifty IT surged 3.31 per cent while Nifty Auto rose 2.61 per cent.