Stock market today: On Monday, 124 stocks hit their 52-week high, including Anand Rathi Wealth Ltd, Bosch Ltd, CCL Products (India) Ltd, Delhivery Ltd, eClerx Services Ltd, HDFC Asset Management Company Ltd, JK Cement Ltd, Nuvoco Vistas Corporation Ltd, Star Cement Ltd, Sumitomo Chemical India Ltd, and TVS Motor Company Ltd.
In contrast, 125 stocks touched 52-week lows, with notable mentions like Indian Energy Exchange Ltd, Ramkrishna Forgings Ltd, and Tata Consultancy Services Ltd (TCS).
Today, Indian stock indices made a notable recovery. The Sensex climbed by 419 points to end at 81,018.72 (+0.52%), while the Nifty 50 increased by 0.64% to close above the significant 24,700 level at 24,722.25.
Analysts suggest that this favourable closing was driven by strong demand in metal and auto shares, better global signals, and renewed hope ahead of important corporate earnings and the forthcoming RBI policy decision.
As noted by Vaibhav Vidwani, a Research Analyst at Bonanza, a significant factor contributing to today’s gains was the improved global risk sentiment, with Asian markets showing signs of recovery and US index futures stabilizing after a period of volatility.
Investors dismissed worries regarding new US tariffs following a weaker jobs report in the US, which rekindled expectations for a possible interest rate cut by the US Federal Reserve next month. In the domestic market, major FMCG companies and select automotive leaders like Hero MotoCorp performed strongly, while sectors such as metals led the gains due to a positive outlook on demand, according to Vidwani.
Further, Vinod Nair, Head of Research at Geojit Investments, explained that the domestic equity market has gained ground, bolstered by strong performances in the metal and automotive industries. A declining US dollar, coupled with impressive monthly auto sales and positive quarterly results from major automakers, has sparked renewed interest among investors in these sectors.
The summary of Q1 earnings suggests that companies focused on consumption are reaping benefits from an increase in volume demand. On the other hand, the rise in unemployment and a slowdown in job creation in the US have strengthened expectations for a possible rate cut by the FED. Nevertheless, there is still a need for caution due to elevated US tariffs.
Nifty 50 Outlook
According to Rupak De, Senior Technical Analyst at LKP Securities, following a positive start, the index remained in the green throughout the day. On the hourly chart, it has reclaimed the 21EMA, indicating improving sentiment. The RSI has exhibited a positive divergence again, pointing towards improving momentum.
“Moreover, on the daily chart, a bullish Harami pattern has formed, signaling waning bearishness that could lead to a recovery in the short term. On the higher end, it might move towards 24,850/25,000. Support on the lower end, is placed at 24,650/24,500,” added De.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
