Investors’ wealth rise over ₹3.24 lakh crore on Monday after Sensex and Nifty 50 halted their three days losing streaks. Both benchmarks gained by around 1.4% making it their biggest upside in the current year. Markets rallied due to a strong bull run in global cues after US employment data that lifted hopes for a lesser size hike by US Fed in forthcoming policies.
As per BSE data, the listed firms’ market cap came in at over ₹282.99 lakh crore on January 9th. This would be over ₹3.24 lakh crore from last week’s Friday closing of ₹279.75 lakh crore.
On Monday, during the trading hours, Sensex gained as high as 60,889.41 soaring over 989 points, while Nifty 50 touched the day’s high of 18,141.40 with an upside of more than 282 points.
After market hours, Sensex jumped by 846.94 points or 1.41% to close at 60,747.31. While Nifty 50 climbed by 241.75 points or 1.35% to end at 18,101.20. This would be the highest percentage gain so far in 2023.
IT stocks were the biggest gains as investors waited for Tata Group-backed TCS earnings for the December 2022 quarter in the day. IT index on BSE zoomed over 711 points, while Nifty IT jumped nearly 3%. Peers like Infosys and HCL Tech are also lined up to announce their Q3 on January 12th followed by Wipro on January 13.
During the third quarter, TCS posted a consolidated net profit of ₹10,846 crore attributable to shareholders rising by 11.02% YoY and 3.98% QoQ. Consolidated revenue from operations came in at ₹58,229 crore increasing by 19.11% YoY and 5.28% QoQ. In terms of constant currency, the revenue growth was at 13.5% YoY driven by business in North America and the UK.
The top bulls were M&M, HCL Tech, TCS, IndusInd Bank, Tech Mahindra, and Bharti Airtel were top gainers with an upside from 2.6-3.6%. Other heavyweights such as Wipro, Infosys, Reliance Industries, Axis Bank, Tata Motors, HUL, Tata Steel, and L&T also added to the performance gaining by 1.5-2.5%.
While Titan and Bajaj Finserv were top laggards.
FIIs selling also slowed down on Monday with an outflow of merely ₹203.13 crore in Indian equities compared to a selloff of ₹2,902.46 crore on Friday last week. On the other hand, DIIs pumped in ₹1,723.79 crore in Indian stocks on January 9th. FIIs are foreign institutional investors, while DIIs are domestic institutional investors.
Indian equities were in an extremely bearish tone last week for three consecutive days between January 4th to 6th. In these three sessions, the market cap of BSE-listed firms plunged by over ₹4,90,293.28 crore.
Talking about Monday’s market performance, Ajit Mishra, VP – Technical Research, at Religare Broking said, markets started the week with an uptick and gained nearly one and a half percent, tracking upbeat global cues. After the gap-up opening, the Nifty index maintained a positive tone for most of the session and finally settled at 18,101.20 levels. The surprise recovery in the IT majors, ahead of the TCS numbers, contributed significantly to the rebound. Besides, a surge in energy, metal, auto, and banking majors further added to the positivity. The broader indices too ended higher and gained in the range of 0.5%-0.8%.
Mishra added, “Markets will react to the TCS numbers in the early trade. Besides, the performance of the global indices will also be in focus. On the index front, a decisive close above 18260 levels in Nifty may result in further recovery else the decline would resume. Meanwhile, we recommend continuing with a stock-specific trading approach with a focus on risk management.”
Further, going ahead, Rohan Patil, Technical Analyst, SAMCO Securities on Nifty said, the Benchmark Index, on the daily chart, has formed an ‘Above the Stomach ‘candle stick pattern. This candlestick pattern comes from the bullish family, where the first candle is a bearish candle but the second one is a bullish candle, which opens midway of the first candle but closes higher above it. Now, Nifty has to be above 18,000 – 18,050 zones for an up move, towards 18,250 and 18,300 zones, whereas support is placed at 17,800 zones.