Closing Bell: Sensex, NIfty cheer first day of FY 2019-20; Hindalco Industries, Matrimony.com stocks gain
Metal, IT, Pharma and FMCG counters are highly bullish as markets are expecting a 25 bps cut in the upcoming RBI Monetary Policy review, say market experts.
On account of emerging optimism in Sino-US trade talks, Indian indices touched to its all-time high. The BSE Sensex closed at 38,837 after making an intraday high of 39,115 which was its all-time high. Similarly, the 50-stock Nifty index closed at 11,669 after making it's the intraday high of 11,738. The Nifty Bank index witnessed some profit booking before close shedding 100 points to 30,326 levels. Stocks from metal and IT sector were the engines to Dalal Street bull run.
Elaborating upon the reason for this rally at Indian indices Prakash Pandey, Director & Head of Research at Fairwealth Securities told Zee Business online, "Metal, IT, Pharma and FMCG counters are highly bullish as markets are expecting a 25 bps cut in the upcoming RBI Monetary Policy review." He said that investors should avoid taking any fresh buy position into the Bank Nifty index, however, it has strong support at 30,100.
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Suggesting investors what to do in current market scenario Simi Bhaumik, a SEBI registered technical equity analyst said, "Nifty is near its all-time high and has strong support at 11,650. If it sustains above these levels tomorrow then one can buy at around 11,670 levels for the target of near 11,750." She said that the market is overall bullish and an investor should adopt buy on dips strategy.
The BSE Metal index rose over 2 per cent in the intraday trade. Metal major Hindalco Industries rose over 5 per cent, while NALCO, SAIL, Tata Steel and Vedanta stocks rose over 2.25 per cent.
The BSE IT index added more than 1.5 per cent in the intraday trade on Monday. IT major Birlasoft added around 4.4 per cent, Hexaware Technologies stocks shot up over 4.5 per cent, Infosys counter went up around 1.4 per cent, Kellton Tech Solutions shares jump around 3.75 per cent, Matrimony.com stocks soar near 10 per cent, shares of Ramco Systems rose more than 6 per cent while Rolta stocks went northward around 2 per cent.
Industry stocks too witnessed some fresh buying on Monday. Industry major APL Apollo Tubes went up near 3.5 per cent, shares of Arshiya shot up near 20 per cent, Astral Poly Technik counter rose above 3.5 per cent, Atlanta scrip rose near 4.8 per cent, Bharat Electronics counter rose 2.68 percent.
Asian stocks too witnessed bull run on emerging trade optimism in Sino-US trade talks. The Japanese Nikkei 225 rose 1.4 per cent, South Korean index Kospi went up 1.29 per cent, Hang Seng shot up 1.83 per cent while Shanghai Composite index skyrocketed over 2.5 per cent. Australian FTSE 100 rose over half a per cent.
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