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Amid volatility, Sensex trims major gains, RIL at new high
Mumbai, July 13, 2020
The Indian stock market trimmed most of its initial gains on Monday in a largely volatile trade session.
The BSE Sensex, which surged as much as 429 points to cross the 37,000-mark, ended just 99.36 points or 0.27 points higher at 36,693.69.
It had opened at 36,880.66 and touched an intra-day high of 37,024.20 and a low of 36,533.96 points.
The Nifty50 on the National Stock Exchange (NSE) closed at 10,802.70, higher by 34.65 points or 0.32 per cent from its previous close.
Among the stocks, RIL continued its bull run as it touched a new high of Rs 1,947 per share and also became the first Indian company with a market capitalisation of over Rs 12 lakh crore.
At the end of the day's trade, RIL's market cap was at over Rs 12.26 lakh crore. Its shares on the BSE closed at Rs 1,934.30, higher by Rs 55.80 or 2.97 per cent from its previous close.
Vinod Nair, Head of Research at Geojit Financial Services, said: "In a volatile day of trade, the market gave up almost all of its early gains, before closing out the day with a positive bias. Financials ended negative while IT and FMCG led the sectoral gains."
He said that the market is hoping for further stimulus measures from the Reserve Bank of India, following expectations of a softening of inflation rates, which would give RBI room for further rate cuts.
"Investors are advised to be cautious and to look at stock specific movements with regards to earnings announcements and the commentary," Nair said.
Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors, noted that apart from RIL, select FMCG and auto stocks witnessed select buying interest.
"Overall, the market sentiments on the street are divided ahead of the corporate earnings. We are witnessing a fight between greed and fear on the street markets as an unexpected rally on the market has unfolded without fundamental backing amid a slowdown in economic growth due to the COVID-19 lockdown," Sharma said.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: "Technically, with the Nifty bouncing back strongly from the lows, the bulls are not willing to give up easily."
Further upsides are likely once the immediate highs of 10,838 are crossed, but weakness could however emerge if the supports of 10,756 are broken, he said.