Bulls tighten their grip, Sensex closes 1,041 points higher, Nifty settles at 16,661, and Ethos decl
Even when Brent crude prices passed the $120 per barrel threshold, domestic equity markets increased in lockstep with their global counterparts. The S&P BSE Sensex managed to maintain its gains, finishing 1,041 points or 1.9% higher at 55,926. The Nifty50 also went beyond the significant 16,650-point threshold, finishing at 16,661, up 309 points or 1.89 percent. In Monday's trading, the market value of domestic stocks increased by Rs 4.4 lakh crore as investors followed the rise in US markets on Friday in anticipation of impending inflation high.
Top Losers & Gainers
Titan, Infosys, M&M, L&T, Reliance Industries, HCL Tech, TCS, and Tech M were the top gainers among individual equities, rising between 3 and 5 percent. Meanwhile, the shares of Ultratech Cement, Bajaj Finance, Wipro, Bharti Airtel, and HDFC increased by over 1.5% apiece.
The more inclusive BSE MidCap and SmallCap indices also increased by almost 2% each. 3M India, Jubilant FoodWorks, IRCTC, Crompton Greaves, Ashoka Buildcon, Technicraft Industries, and Unichem Labs were the top performers in the mid-and small-cap categories. Sectorally, the Nifty PSU Bank index increased by 3.3%, the Nifty IT and Realty indices by 4% apiece, and the Nifty Auto indices by 2%.
"All the sectors finished in the black, with the IT, real estate, and oil & gas indices each rising by 2% to 3%. In anticipation of a possible halt to interest rate increases later this year, Indian markets are responding to China's relaxation of Covid restrictions in Shanghai and Beijing as well as the US Federal Reserve's meeting minutes from early May. Technically, Nifty50's main resistance levels are 16800 and 16400, respectively. On the downside, 16400 can serve as sturdy support. 36200 and 35600, respectively, are important levels of support and resistance for the Bank Nifty, according to Nigam.
On the BSE, shares of Ethos closed at Rs 802 per share, down 8.6% from its initial public offering price of Rs 878. "Ethos has a healthy market share in overall retail sales in the premium and luxury categories," stated Amarjeet S. Maurya of Angle One Ltd. Additionally, Ethos offers a large selection of products and great brands, but we think that these advantages are already reflected in the present values, leaving little possibility for growth.
The company's unfavorable listing can be related to the premium pricing and the present market attitudes, according to Mohit Nigam of Hem Securities. With a substantial customer base, Ethos is one of India's top retailers of high-end timepieces. But because of its high valuations and inventory-intensive operations, it is a good investment opportunity for long-term investors.
European Shares Rise
As new Chinese stimulus helped sustain optimism from the previous week, European markets reached over three-week highs on Monday. Investors were also keeping an eye out for other economic data this week, particularly German inflation. To ease a COVID-19 lockdown in the entire city, authorities in Shanghai, China's commercial capital, will waive several requirements for firms to start operating again as of Wednesday. To maintain optimism for economic growth and demand from the second-largest economy in the world, Shanghai officials have also unveiled an action plan to stimulate the economy. The STOXX 600 index for all of Europe increased by 0.6 percent, with advances in technology firms driving the broad increases.