Indian stock markets today closed with gains led by metal and auto stocks. Midcap and smallcap stocks also bounced back today after the recent selloff. Blue-chip NSE Nifty 50 index closed 0.8% higher at 18,268.40, while benchmark S&P BSE Sensex It rose nearly 400 points to 61,350.26. Most of the sectoral indices closed in the green, trading in line with the benchmark. The broader indices also got relief after five days of decline and registered good gains. The BSE Midcap and Smallcap indices rose 1.75% and 2.2%.
Investors will keep an eye on management’s comments with several top-tier companies reporting their earnings this week.
“The signs are in favor of a further rally, though much will depend on the earnings announcements in the following sessions. We have some prominent names like Bajaj Auto, ITC, IndusInd Bank, Maruti and L&T to announce their results on 27th October. Apart from this, global cues will also remain in focus. Ajit Mishra, VP – Research, Religare Broking said, “Participants should maintain a positive but cautious approach and prioritize hedge positions.”
After a correction in the past few sessions, the metals index rose 2.9% today, lifted by higher steel prices, while the auto index gained 2%.
Kotak Mahindra Bank shares hit a record high of up to 4% after a better-than-expected quarterly profit.
Deepak Jasani, Head of Retail Research, HDFC Securities, said: “Nifty closed at the highest level in 5 sessions showing recovery strength. The advance decline ratio was increasingly positive. However, the volume was at a lower level. With the resumption of trading in the next few sessions, Nifty may move towards 18377-18445. 18099-18125 is an important support band for Nifty.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said: “The index has not been able to close above 18350 which is an important level. If we can hold it for a few sessions, the market will retest its current Will start an uptrend and then proceed to take higher targets. 18000 is a good base and it has been supported by Nifty on several occasions. If this level is disrespected, it will result in loss of psychological and technical confidence would be infringed.”
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