17 May , 2024 By : Debdeep Gupta
Sensex and Nifty 50 recovered from losses around noon on May 17, with automobile and financial services stocks supporting the indices.
"The market is currently in a recovery phase and we anticipate this trend to persist till broad-based interest returns," said Kranthi Bathini, Director-Equity strategy, Wealth Mills Securities.
At 11:05 am, the Sensex was up 268 points or 0.4 percent at 73,932 and the Nifty 50 was up 62 points or 0.3 percent at 22,465. About 2,124 shares advanced, 1,039 shares declined, and 125 shares unchanged.
Broader market outperformed the benchmarks with BSE Midcap and Smallcap index rising nearly a percent each.
Sectoral Trend
Gains in Mahindra & Mahindra and Tata Motors helped the Nifty Auto rise nearly 2 percent. Shares of M&M were up more than 6 percent after multiple brokerages said that they were optimistic about the business following its strong Q4FY24 results.
Meanwhile, IT stock were the major laggards in today's session.
Fundamental View
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services cited positive global and domestic cues as reasons for strength in the market. The decline in US inflation in April and retail sales cooling off indicate a soft landing of the US economy, paving the way for rate cuts by the Federal Reserve. "This favourable global construct can impart resilience to the mother market thereby providing stability to other markets," he said.
"Domestically, the improvement in the voter turnout in the 4th phase of polling is positive from the market's perspective, since it removes some jitters associated with election results," Vijayakumar said.
He expects FII-heavy stocks to witness further recovery.
Technical View
Nifty 50 can find support at 22,300 followed by 22,250 and 22,200, according to Deven Mehta, Research Analyst at Choice Broking. "On the higher side, 22,500 can be an immediate resistance, followed by 22,550 and 22,600," he said.
Key Nifty gainers
M&M, JSW Steel, Grasim, UltraTech
Key Nifty losers
Cipla, Bajaj Auto, Britannia, Nestle, Dr Reddy's
Key Sensex gainers
M&M, JSW Steel, HDFC Bank, SBI
Key Sensex losers
TCS, Nestle, Infosys, Adani Ports
Stock moves
Kaynes Technology: Shares skyrocketed over 16 percent after the company reported an upbeat January-March quarter (Q4FY24) performance.
Endurance Technologies: Share zoomed 14 percent after the automotive components manufacturer has recorded a 54 percent on-year jump in consolidated net profit.
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