Equity indices end higher, auto, banking stocks surge

The domestic equity market began the week with a positive note and settled higher on Monday. The bulls were on the edge of the action as headline indices extended their gains for the second consecutive session amid the positive global sentiment. However, gains were capped as profit booking by traders kept the rally in check.

BSE Sensex gained 240.36 points, 0.38 per cent to end the day at 62,787. 58, while NSE's Nifty 50 surged 59.75 points, or 0.32 percent, to end the day at 18,593. The broader markets rose with headline peers as BSE midcap and smallcap indices settled higher. The fear gauge in India VIX rose slightly to 11.14 - mark.

The week started with mild gains, following firm global cues. After the gap-up beginning, Nifty remained in a range until the end and finally settled at 18,598. Meanwhile, mixed trends on the sectoral front kept the traders busy, wherein auto, banking mainly private and realty posted decent gains, said Ajit Mishra, SVP Technical Research at Religare Broking.

The rebound in the US markets has caused this uptick but we need stability on the global front for a new high. The traders must continue with a stock-specific trading strategy and utilize any intermediate dips or pause to accumulate quality stocks. Apart from the key sectors, one can selectively look at midcap and smallcap also, owing to their prevailing outperformance, he said.

The Nifty Auto index surged more than a per cent, while Nifty Media, Consumer Durable, and Private Bank indices rose about a per cent each. The Nifty FMCG and IT indices were the biggest laggards. Nifty PSU Bank and Healthcare indices also traded in the red.

Mahindra Mahindra led the gainers with a gain of more than 4 per cent, while Axis Bank surged about 3 per cent. Both Tata Motors and Larsen Toubro surged 2 per cent, each with a revenue of Rs.251 million, a gain of 2 per cent. The others on the index were Grasim, Tata Steel, Maruti Suzuki, IndusInd Bank, UPL and Cipla.

Divis Labs,Tech Mahindra and Asian Paints each lost more than a percent. Nestle India, Bharat Petroleum, Hundustan Unilever, Here MotoCorp, Kotak Mahindra Bank, and Eicher Motors topped among the losers, falling a per cent each.

A continued stream of favourable domestic economic indicators is a key factor in the equity market's stability. Stronger than expected domestic PMI figures, sequential growth in auto sales and robust expansion in bank credit are instilling investor confidence in India's growth prospects, said Vinod Nair, head of research at Geojit Financial Services.

The US jobs data showed a mixed picture, with non-farm payroll showing acceleration, while the unemployment rate surged from 3.4 per cent to 3.7 per cent in May.

A total of 3,5840 shares were traded on the BSE on Monday, and 2,170 were settled with gains. The session ended with 1,490 stocks up, while 180 shares remained unchanged. A total of 312 shares hit their upper circuit, while 173 shares tested the lower circuit levels for the day.

In the broader markets, Hi-Tech Gear hit an upper circuit of 20 per cent, while GE Power India and Mazagaon Dock surged 18 per cent each. Indo Rama and CarTrade Tech advanced 16 per cent during the day, while Tracxn Technologies traded 13 per cent higher for the day.

Emudhra fell more than 7 per cent, while Venus Remedies and Inox Wind tanked 6 per cent each. Indoco Remedies, Brightcom Group, and Manorama Industries each hit a lower circuit of 5 per cent each.