10 May , 2024 By : Debdeep Gupta
Sensex and Nifty 50 halted a five-day losing streak, advancing by 0.5 percent each in the afternoon, buoyed by positive signals from global markets.
The optimism stemmed from a higher-than-expected increase in the latest US weekly jobless claims data, which fueled speculations of an early rate cut by the US Fed.
Around noon, the Sensex was up 253 points or 0.4 percent at 72,657 and the Nifty 50 was up 106 points or 0.5 percent at 22,063. About 1,960 shares advanced, 1,142 shares declined, and 112 shares were unchanged.
In the broader market, both BSE Midcap and Smallcap indices were up 0.4 percent each.
Analysts are now looking forward to forthcoming inflation data, due next week, for deeper insights into the US economic condition.
Sectoral Trend
Except for Nifty IT and Nifty Realty, which experienced declines of 1 percent and 0.1 percent respectively, the remaining 11 sectoral indices witnessed buying activity.
IT and FMCG stocks drove the bulk of Nifty 50's gains.
Fundamental View
"Following the significant sell-off witnessed in recent days, today's trend can be interpreted as value buying," said Amish Shah, Research Analyst at Taurus Corporate Advisory Services.
Shah said that the sustainability of the gains witnessed on May 10 depends on FII activity. Looking ahead, he said that investors will closely monitor FII selling and the election outcome as major focal points.
Technical Trend
"The critical level to monitor next lies within the range of 21750-21700," said Sameet Chavan, Head Research, Technical and Derivative - Angel One.
Conversely, Chavan sees 22,150 - 22,200 as immediate hurdles for Nifty 50.
Key Nifty gainers
BPCL, Hero MotoCorp, Asian Paints, Adani Ports
Key Nifty losers
TCS, Infosys, Tech Mahindra, Grasim
Key Sensex gainers
Asian Paints, NTPC, JSW Steel, Bharti Airtel
Key Sensex losers
TCS, Infosys, Tech Mahindra, M&M
Stock moves
Intellect Design Arena: Shares fell over 14 percent a day after the company reported weak earnings for the quarter ended March 2024.
Abbott India: Shares rose 5 percent as investors rejoiced in the company's strong performance in the January-March quarter. Meanwhile, the company also rolled out its highest-ever dividend payout, which attracted a flurry of investors to lap up the stock.
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