Stock Market Today: Sensex, Nifty Close At A Two-Week High, FPIs Remain Net Sellers

Overseas investors stay net sellers of Indian equities on Monday

Foreign portfolio investors off loaded stocks worth Rs 549.37 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors remained net buyers and mopped up equities worth 595.70 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 92473 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The S&P BSE Sensex closed up 595 points, or 0.92%, at 64,958.69 while the NSE Nifty 50 was 181 points or 0.94% higher at 19,411.75.

The yield on the 10-year bond closed flat at 7.31% on Monday.

Source: Bloomberg

• The local currency strengthened 7 paise to close at 83.22 against the U.S dollar on Monday.

• It closed at 83.29 on Friday.

Source: Bloomberg

India's benchmark stock indices rose ahead of closing after trading higher for the third day through Monday. Energy, metal and realty sectors rose whereas PSU banks and consumer durables were under pressure. Nifty 50 was trading above 19,300 level, whereas Sensex was beyond 64,700 mark.

Intraday, Sensex topped 64,900 mark, while Nifty 50 rose above 19,400 level; the highest level since Oct. 23, 2023.

The current market structure indicates that the pullback rally may continue as long as the index is trading above 19,150 and 63,500 levels respectively, Shrikant Chouhan, head – equity research, Kotak Securities, said. "For those who hold the positions for a long time, it is advisable to take partial profits between 19,350-19,400 levels. Buying is advisable between 19,270 and 19,230 levels."

The S&P BSE Sensex closed up 595 points, or 0.92%, at 64,958.69 while the NSE Nifty 50 was 181 points or 0.94% higher at 19,411.75.

Shares edged higher after last week’s rally amid optimism that the central-bank interest rates are near their peak. Crude oil climbed 1%. European equities advanced 0.3% and U.S. equity futures were little changed after the S&P 500 advanced almost 6% last week.

Equities rose in Australia, Japan, and Hong Kong. South Korean shares lead the rally, with the Kospi jumping as much as 4.4%, following Sunday’s news the country would ban short selling until the end of June. Chinese technology and property developers also rose.

ICICI Bank Ltd., Larsen & Toubro Ltd., HDFC Bank Ltd., Reliance Industries Ltd., and Axis Bank Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, State Bank of India, Hindustan Unilever Ltd., Titan Co., Tata Motors Ltd., and Cipla Ltd. were negatively contributing to the change.

The broader markets mirrored the larger peers on Monday; the S&P BSE MidCap Index was up 0.90%, whereas S&P BSE SmallCap Index was 1% higher.

Nineteen out of the 20 sectors compiled by BSE advanced while S&P BSE Consumer Durables declined. S&P BSE Capital Goods and S&P BSE Metal rose the most.

The market breadth was skewed in the favour of the buyers. About 2,452 stocks rose, 1,336 declined, while 176 remained unchanged on the BSE.

“Nifty is expected to rise in sync with global stock markets, benefitting from several positive catalysts. These factors include market optimism that the Federal Reserve won't raise interest rates, sluggish U.S. job growth, and the calming effect of India's VIX at 10.88 levels," Prashanth Tapse, senior vice president (research), Mehta Equities Ltd. said. These optimistic indicators suggest a promising outlook for Nifty's performance in the near future, Tapse said.

• Nifty trading at days high, up 0.95% led by Divi's Laboratories (4.6%), Hero MotoCorp (2.5%), Eicher Motors (2.5%)

• Nifty Energy up 1.37% led by IOCL (3.3%), Adani Green (2.9%), Tata Power (2.1%)

• Nifty Metal up 1.31% led by Jindal Steel & Power (4.5%), APL Apollo Tubes (3.2%), NALCO (2%)

• Nifty Realty up 1.23% led by prestige Estates (2.9%), Sobha Ltd (2.5%), Brigade Enterprises (2.5%)