After the corporate results season, the market continued gains for the third week ended June 3, aided by favourable global cues and good updates on monsoon progress.
Technology, capital goods, energy, metals, oil & gas, and real estate companies all helped the volatile market gain about 1%. Banks, electricity, and healthcare companies, on the other hand, were under pressure. The BSE IT, Realty, and Energy indexes rose four to five percent, outperforming every other index.
The BSE Sensex increased by 885 points, or 1.6 percent, to 55,769 points, while the Nifty50 increased by 232 points, or 1.4 percent, to 16,584.
Broader indices gained traction as well, with the BSE Midcap index jumping 257 points, or 1.14 percent, to 22,775 and the Smallcap index rising 763 points, or 3%, to 26,384.
Rattanindia Enterprises, Mirza International, Timken India, DB Realty, Birla Tyres, Hindustan Oil Exploration Company, Everest Kanto Cylinder, PG Electroplast, GTL Infrastructure, Raymond, Monte Carlo Fashions, Fine Organics Industries, Century Textiles and Industries, Shiva Cement, and Future Lifes were among the top 101 stocks on the Smallcap index to post double-digit gains in just five days of trading.
Elecon Engineering Company, Sterling Tools, Barbeque Nation Hospitality, AshokaBuildcon, Suzlon Energy, Dollar Industries, Route Mobile, Zen Technologies, MM Forgings, Mahindra Lifespace Developers, KPIT Technologies, Lemon Tree Hotels, Ion Exchange (India), HBL Power Systems, and Shree Renuka Sugars all saw gains of 15 to nearly 20%.
During the week, foreign institutional investors (FIIs) remained net sellers of around Rs 6,600 crore, which was countered by domestic institutional investors buying Rs 6,845 crore worth of shares.
The market is poised to continue its upswing this week amid volatility and a monetary policy meeting, but anything negative on the global front might ruin the party, according to experts.
“Markets have been recovering for the past three weeks,” said Ajit Mishra, VP of Research at Religare Broking. “However, the move lacks decisiveness due to lingering challenges like global tightening due to inflation, geopolitical tension, and so on.”
With earnings season behind us, he believes the spotlight will shift to the June 6-8 monetary policy review meeting. Markets have already factored in another raise because to persistently high inflation, but Mishra believes the focus will be on commentary as the monsoon improves.
The market analyst believes the Nifty will regain momentum above 16,900, but a breach below 16,400 will reintroduce bears into the picture. Meanwhile, participants should concentrate on sector/stock selection, since markets offer chances on both sides, but cautioned against going too far.