Indian stock markets ended on a positive note on Monday, with the BSE Sensex closing at 81,559.54, up 375.61 points or 0.46 per cent, while the Nifty 50 finished at 24,936.40, gaining 84.25 points or 0.34 per cent. The day’s trading session saw a reversal from the previous day’s losses, primarily driven by strong performances in the FMCG and banking sectors.
Hindustan Unilever emerged as the top gainer on the NSE, surging 2.85 per cent, followed by Shriram Finance at 2.30 per cent, ICICI Bank at 2.09 per cent, ITC at 1.95 per cent, and Britannia at 1.74 per cent. On the flip side, ONGC led the losers, dropping 2.91 per cent, with Tech Mahindra (-2.48 per cent), BPCL (-1.19 per cent), Tata Steel (-1.14 per cent), and Hindalco (-1.06 per cent) rounding out the top five decliners.
The broader market showed mixed signals, with 1,661 stocks advancing and 2,375 declining on the BSE. A total of 266 stocks hit their 52-week highs, while 54 touched their 52-week lows. The market also saw 372 stocks reaching the upper circuit and 308 hitting the lower circuit.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented on the day’s performance, saying, “Today, the benchmark indices witnessed narrow range activity... Technically, after a weak open market took the support near 20 day SMA and reversed. Post reversal it held positive momentum throughout the day.”
Chouhan added, “A small bullish candle on daily charts and reversal formation on intraday charts suggesting pullback formation is likely to continue in the near future.”
The FMCG index outperformed other sectors, rallying 2 per cent, while Energy and Oil & Gas indices shed over 1 per cent. Among Sensex stocks, Hindustan Unilever was the top gainer, rising 2.95 per cent, followed by ICICI Bank (2.43 per cent), ITC (1.96 per cent), Kotak Mahindra Bank (1.59 per cent), and IndusInd Bank (1.40 per cent).
Ajit Mishra, SVP of Research at Religare Broking Ltd, offered his analysis: “This is a normal pause, and holding above 24,900 could trigger a further rebound toward the 25,100-25,200 range. Otherwise, the decline may resume. A lot will depend on the performance of global markets, particularly the US, given the lack of major domestic triggers.”
Ameya Ranadive, CMT CFTe at StoxBox, noted that the Nifty 50 ended its three-day losing streak, while the Sensex reversed a four-day decline. He observed, “The market’s benchmark index exhibited mild volatility at the onset of the trading week. Following the initial 15 minutes, the volatility subsided and the index demonstrated modest buying interest around the support level of 24750.”
Foreign portfolio investors (FPIs) were net sellers on September 6, 2024, offloading ₹620.95 crore worth of shares, with a sale value of ₹17,532.30 crore and a buy value of ₹16,911.35 crore. On the other hand, domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹2,121.53 crore, with a buy value of ₹15,699.20 crore and sales totaling ₹13,577.67 crore. The market also saw clients and proprietary traders engage actively, with clients recording a net sales of ₹250.30 crore, while proprietary traders sold ₹8.51 crore worth of shares.
As the markets continue to navigate through mixed signals and sector rotations, analysts suggest that traders should maintain a balanced approach, focusing on stock selection while remaining cautious in the near term. The performance of global markets, especially the US, is expected to play a crucial role in determining the direction of Indian equities in the coming sessions.