Stock-specific action lifts equity indices, banking stocks gain
Mumbai, August 9, 2021
Stock-specific buying activity supported equity markets' northward trajectory on Monday.
However, gains were capped as Asian shares fell, while rising Delta virus cases made investors' nervous.
Initially, indices opened mildly higher but soon gave up their morning gains. Nevertheless, they formed an intra-day low soon after but made a decent recovery.
Amongst sectors, banking and IT stocks gained the most, while oil and gas, metals, capital goods, and telecom sectors fell the most.
The S&P BSE Sensex closed at 54,402.85, higher by 125.13 points, or 0.23 per cent, from its previous close.
The NSE Nifty50 ended the day's trade at 16,258.25, higher by 20.05 points, or 0.12 per cent, from its previous close.
"Stock-specific moves are visible as the Q1 results announcement continues. BSE MidCap shed over 1 per cent while the BSE SmallCap declined nearly 0.75 per cent," HDFC Securities' Head of Retail Research, Deepak Jasani, said.
"The advance-decline ratio continued to be deeply in the negative. This reflects profit-taking across the board by traders or investors. The Nifty has made a lower low and lower high on a near-term basis."
Motilal Oswal Financial Services' Head, Retail Research Siddhartha Khemka said: "Nifty remained range-bound and witnessed profit booking at higher levels in the absence of any trigger. Selling pressure was higher in case of midcaps and smallcaps given sharp rally they witnessed over the last 2-3 months."
"Media stocks gained the most as more relaxations get announced by the government across various states. Private banks too saw buying as more wider opening up of the economies across would ease the pressure on the banks."