Sensex rises 249 points, Nifty at 16,303; IT & pharma stocks rally
Nifty IT index climbed 0.72%, followed by the Nifty Pharma & Nifty Realty indices rose 0.48%, each. While Nifty FMCG & Nifty Auto gained around 0.36%.
Benchmark equity indices opened higher ignoring weakness in Asian peers after a better-than-expected increase in US payrolls that fuelled expectations that the Federal Reserve is moving closer to a pullback of stimulus. In opening trade, Sensex gained 249 points or 0.46% to 54,526 while the Nifty 50 index was trading at 16,303 higher by 65 points or 0.40%.
“The better than expected jobs data from the US, with unemployment falling to 5.4%, is likely to weigh on the markets in the coming days. The strengthening of the dollar and the rise of the 10-year bond yield to 1.32% indicate that equity markets, particularly in EMs, may turn weak. But the retail frenzy may counter the downside in India in the short run. Nifty 15950, which was the resistance level in July, can turn out to be the support level in August. The faster spread of infections in many countries including US and the consequent restrictions on movement have softened crude prices pushing Brent crude below $70. This will further strengthen India’s improving macros. There is froth in the broader markets. Large-caps are likely to outperform mid-small-caps in the coming days,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Top gainers & losers
Top gainers & losers on the Sensex.
Sectoral strand
Sectoral indices opened in higher on Monday. Nifty IT index climbed 0.72%, followed by the Nifty Pharma and Nifty Realty indices rose 0.48%, each. While Nifty FMCG and Nifty Auto gained around 0.36% and Nifty Bank was up with marginal gains of 0.04%.
Broader market
The broader market opened mixed as BSE MidCap index was marginally down by 0.05% to 23,193 whereas the BSE SmallCap index is quoting at 26,898 up about 0.35%.
Overall market breadth was negative as 1,653 shares advanced compared to 758 declined while 106 remained unchanged.
New listing
Shares of Rolex Rings will list on BSE and NSE today. Earlier, the initial public offering of the auto components maker got subscribed 130.44 times on the last day of subscription on July 30.
Earnings today
Shree Cement, AstraZeneca Pharma India, Balrampur Chini Mills, Birla Tyres, Bombay Dyeing, Chemcon Speciality Chemicals, Clean Science and Technology, Gati, Gujarat State Petronet, Indian Hotels, Laxmi Organic Industries, MRF, Nilkamal, Reliance Power, Satin Creditcare Network, Shalby, Shankara Building Products, Subex, Suven Life Sciences, Timken India, and Venky’s (India) will release quarterly earnings on August 9.
Global markets
Overseas, Asian stocks are trading mixed on Monday.
In the US, the Dow and the S&P 500 indexes closed at record highs on Friday following a stronger-than-expected jobs report, while investors shrugged off concerns over the Delta variant impacting a nascent economic recovery.
Hiring surged in July as American employers added 943,000 jobs. The unemployment rate dropped to 5.4% another sign that the U.S. economy continues to bounce back with surprising vigor from last year’s coronavirus shutdown.