“Data on Friday showed US job growth picked up in August, but the unemployment rate jumped to 3.8 per cent, while wage gains moderated. The economy created 110,000 fewer jobs than previously reported in June and July," reported Reuters.
Recent macro data have shown inflation is easing and labour market is cooling in the US. This indicates the US economy is set for a soft landing.
As per Reuters, CME FedWatch tool showed that markets are pricing in a 93 per cent chance of the Fed holding steady on rates this month, and over a 60 per cent probability of no more hikes this year.
Domestically, economic growth outlook remains strong, giving hopes that the market will continue to see bullish sentiment in the medium term.
As reported by media, after Moody’s Investors Service raised growth forecast for India’s economy for the calendar year 2023 from 5.5 per cent to 6.7 per cent, Morgan Stanley increased its projection for India's growth to 6.4 per cent, up from the previous estimate of 6.2 per cent for the financial year 2023-2024. Deutsche Bank raised its growth forecast for India by 20 basis points to 6.2 percent for the year while Nomura raised its 2023 GDP growth projection to 6.3 per cent from 5.9 per cent previously.
Stock market today
Equity barometer the Sensex opened 139 points higher at 65,525.91 against the previous close of 65,387.16 and rose 297 points to hit the intraday high of 65,683.91. The Nifty50 hit the intraday high of 19,545.15.
Sensex closed 241 points, or 0.37 per cent, higher at 65,628.14 while the Nifty closed the day with a gain of 94 points, or 0.48 per cent, at 19,528.80.
Mid and smallcaps continued their outperformance. The BSE Midcap index hit it fresh record high of 31,783.29 during the session but ended at 31,736.06, up 0.96 per cent. The BSE Smallcap index closed 0.84 per cent higher at 37,734.14 after hitting its all-time high of 37,828.34 during the session.
Over 400 stocks, including HCL Tech, Maruti Suzuki, NTPC, Tata Steel, UltraTech Cement and Wipro, hit thier fresh 52-week high in intraday trade on BSE.
The overall market capitalisation (m-cap) of the firms listed on BSE rose to nearly ₹315 lakh crore from nearly ₹312.4 lakh crore in the previous session, making investors richer by nearly ₹2.6 lakh crore in the single session. In the last two sessions of gains, investors have become richer by nearly ₹5.5 lakh crore.
Meanwhile, crude oil prices were stable amid hopes of tight supply. Expectations of a pause in rate hikes by the Federal Reserve also underpinned sentiment. Brent Crude traded near the $89 per barrel mark around 4 pm.
Top Nifty gainers and losers today
As many as 32 stocks (including Jio Financial Services) ended in the red while the remaining 19 stocks ended in the red in the Nifty index.
Shares of Coal India (up 4.64 per cent), Wipro (up 4.35 per cent) and UltraTech Cement (up 3.96 per cent) ended as the top gainers in the Nifty index.
On the flip side, shares of Mahindra and Mahindra (down 1 per cent), Nestle (down 0.98 per cent) and ITC (down 0.80 per cent) ended as the top losers in the Nifty pack.
Read more: Top gainers, losers today: Wipro, HCL Tech, M&M, ITC, among most active stocks
Sectoral indices today
Barring Nifty Consumer Durables (down 0.22 per cent) and FMCG (down 0.13 per cent), all sectoral indices ended with gains on Monday.
Nifty PSU Bank jumped 2.43 per cent, leading the pack of sectoral gainers, followed by Nifty Metal which rose 2.28 per cent and Nifty IT which clocked a gain of 2.06 per cent.
Nifty Media (up 1.59 per cent) and Realty (up 1.15 per cent) also clocked healthy gains. Nifty Bank rose 0.32 per cent.
Experts’ views on markets
"Recent releases of domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment," said Vinod Nair, Head of Research at Geojit Financial Services.
Technical views on Nifty
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said on the daily charts, the Nifty is stretching on the upside. The intraday dip was bought into which indicates buying interest at supports and also suggests bullishness. The daily momentum indicator has a positive crossover which is a buy signal.
“We believe that the Nifty is in the process of retracing the fall it has witnessed from 19,992 – 19,223 and hence the pullback is likely to last over the next few trading sessions. On the upside, we expect the Nifty to target levels of 19,650. In terms of levels, crucial support zone is placed at 19,420 – 19,360 and immediate hurdle is placed at 19,650 – 19,700," said Gedia.
“Indications are favorable for further rebound as Nifty has surpassed a trend line resistance while holding the support zone of short-term average i.e. 20 EMA. However, a hurdle of around 19,650 may cap the upside and prompt some profit taking too. Amid all, we reiterate our view to focus on stock selection and preferring auto, IT and metal for long trades," said Ajit Mishra, SVP - Technical Research, Religare Broking.
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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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