The stock market demonstrated remarkable resilience on Monday, staging a robust recovery despite initial concerns over disappointing GDP data. The Sensex closed 445.29 points higher at 80,248.08, representing a 0.56 per cent gain, while the Nifty 50 rose 144.95 points or 0.6 per cent to settle at 24,276.05, effectively neutralizing earlier market apprehensions.
The day’s trading session began with muted sentiment following underwhelming economic growth figures, but investors quickly pivoted, driving the market towards positive territory. The swift recovery underscored the market’s ability to absorb and adapt to macroeconomic challenges, with select heavyweight stocks across various sectors gaining significant momentum.
Sector performance revealed interesting dynamics, with defensive and growth-oriented sectors showing distinct movements. The Nifty Pharma index climbed 0.9 per cent, the Nifty Healthcare gained 1 per cent, and the Nifty Consumer Durables surged an impressive 1.5 per cent. This sectoral shift suggested investors were strategically repositioning their portfolios ahead of the crucial Reserve Bank of India (RBI) monetary policy meeting.
Leading the market’s upward trajectory were several standout performers. Ultratech Cement emerged as the top gainer, surging 3.82 per cent, followed by Apollo Hospitals with a 3.45 per cent increase. Grasim added 3.06 per cent, while Shriram Finance and JSW Steel also contributed to the positive sentiment with gains of 2.56 per cent and 2.53 per cent, respectively.
The market breadth remained robust, with 2,505 stocks advancing and 1,552 declining on the BSE. A total of 246 stocks touched 52-week highs, indicating underlying market strength, while only 27 stocks hit 52-week lows.
Market experts provided nuanced perspectives on the day’s trading dynamics. Vinod Nair from Geojit Financial Services observed, “Despite a slump in the Q2 growth rate, the market maintained a positive bias as the core sector output in October shows signs of recovery. Slowing earnings growth is already factored in the market and mid & small caps are rebounding.”
Gaurav Garg from Lemonn Markets Desk offered additional insight: “Today’s market movement suggests that weak GDP data had already been priced in. Traders are now focusing on the Reserve Bank of India’s upcoming monetary policy decision and potential rate action later this week.”
Technical analysts provided deeper market analysis. Ameya Ranadive from StoxBox noted that despite broader market concerns stemming from lower-than-expected economic growth, strong performances by companies like Ultratech Cement and Maruti Suzuki effectively offset potential losses.
Ajit Mishra from Religare Broking offered a forward-looking perspective: “The index’s resilience amid weak macro data is promising, signaling potential for further recovery. A decisive break above 24,350 could pave the way for levels beyond 24,700.”
Not all stocks participated in the rally. Some prominent names experienced downward pressure. HDFC Life was the top loser, dropping 2.67 per cent, followed by NTPC at -1.46 per cent, Cipla at -1.36 per cent, SBI Life at -1.06 per cent, and Hindustan Unilever Limited (HUL) at -0.69 per cent.
The volatility index, India VIX, rose 1.90 per cent to 14.70, indicating potential market uncertainty. This increase suggests investors are preparing for potential market fluctuations, particularly with the upcoming RBI policy meeting.
Market participants are now keenly awaiting the Reserve Bank of India’s Monetary Policy Committee meeting, with widespread anticipation surrounding potential economic guidance, GDP forecast revisions, and any indications of future monetary policy directions.
The day’s trading demonstrated the market’s resilience, ability to absorb economic information, and the investors’ cautious yet optimistic approach in navigating current economic uncertainties.