Sensex jumps 182 points, Nifty above 17,400; BSE Smallcap tops 28,000-mark

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Domestic benchmark equity indices opened higher on Tuesday after the U.S. snapped a five-day drop ahead of inflation data that could impact expectations of the likely timeline for a reduction in Federal Reserve stimulus. In opening trades, Sensex rose 182 points or 0.31% to 58,359 while the Nifty 50 was trading at 17,420 gaining 65 points or 0.37%.

“A major trend in the market this year has been the wide variations in sectoral performances. Metal, IT and Realty have been outperformers with YTD appreciation of 79.41%, 44.86% and 33.92% respectively while the erstwhile market darling, private banking, is languishing with a mere 9.39% appreciation YTD. Pharma too is underperforming with a modest 11.31% appreciation YTD. Two conclusions are possible from this: one, the market is indicating where the near term earnings visibility lies and two, the underperforming banking space has some catching up to do,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Meanwhile, the ‘buy on dips’ strategy has been rewarding investors handsomely since all market corrections are happening intra-day. The better than expected CPI inflation numbers which came in at 5.3 % for August is very positive news. MPC can be expected to continue with the accommodative stance for an extended period of time, Vijayakumar added.

Gainers & losers

Sectoral strand

All sectoral indices were trading in the green on the NSE. Nifty Realty index jumped 0.88%, while Nifty Pharma and Nifty Bank indices rose 0.71% and 0.65% respectively. Whereas Nifty Auto, Nifty FMCG, Nifty IT &  Nifty Metal were trading with gains of up to 0.50%.

Broader markets

The broader markets continued with its outperformance to benchmark indices as the BSE MidCap index advanced 188 points or 0.76% to 24,971 after scaling to a new peak of 24,973. Likewise even the BSE SmallCap index touched a new high of 28,059 and was quoting at 28,038 higher by 172 points or 0.62%.

The market breadth remained in the favour of bulls as 1,773 shares advanced compared to 600 declining and 108 remained unchanged.

New listings

Shares of Ami Organics will debut on the bourses today, 14 September 2021. The offer price is Rs 610 per equity share.

Vijaya Diagnostic Centre will debut on the bourses today, 14 September 2021. The final issue price has been fixed at Rs 531 per share.

Economy

On the macro front, Consumer Price Index-based Inflation (CPI) for August 2021 came in at 5.30%, compared with 5.59% in July, as food prices cooled further, especially in the case of vegetable inflation, data released by the National Statistical Office (NSO) showed on September 13.

Global markets

Overseas, Asian stocks are trading mixed on Tuesday as investors look ahead to the release of U.S. consumer inflation data for August.

In the US, the S&P 500 closed higher on Monday, ending a five-day losing streak as investors focused on potential corporate tax hikes and upcoming economic data. The Dow Jones Industrial Average also advanced, but the Nasdaq Composite Index ended lower.