Daily Big Picture – Key Indices Stage a Solid Comeback; Metal and Banking Shares Lead Rally

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Today’s Action:

The benchmark indices trend higher towards their all-time highs. The broader markets witness selling pressure.

Daily Market Review

The benchmark indices started the week on a solid note, assisted by gains in the banking and financial stocks. Positive global cues and the RBI’s move on big loan defaulters helped key indices in recouping its gains. Meanwhile, the Sensex recorded a new closing high at 31,311.57.

The Nifty opened today on a positive note at 9,626.40 and gained 0.72% or 69.50 points. After trading in the range of 9,614.90-9,673.30, it closed at 9,657.55 in today’s trading session.

Opening at 31,168.98, the Sensex gained 0.82% or 255.17 points in today’s trading session. The trading range observed for the day was 31,163.35-31,362.145.

The Sensex and the Nifty both observed a lower trading volume.

The broader indices performed in contrary to the frontline indices, as the Nifty Midcap index traded almost flat to lose 0.03%, while the Nifty Smallcap lost 0.23% today.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, lost 0.2% in today’s trading session.

The sectoral chart displayed a favorable picture today. All sectors ended in green today apart from Nifty Pharma and Nifty Realty, which lost 0.38% and 0.31%, respectively. The top indices to gain were Nifty Metal, Financial services, and the Bank, which gained 1.75%, 1.04%, and 1.02%, respectively.

A strong momentum was seen in the banking stocks after the RBI asked banks to proceed with the bankruptcy process against the 12 big loan defaulters that it had identified last week. This process will significantly bring down bad debts of large money lenders.

The major news that cheered global markets in today’s session was the results of France’s parliamentary election. The French President Emmanuel Macron’s Republic on the Move party, along with its ally, the Democratic Movement party, has managed to win 350 of the 577 seats in the National Assembly. The significant majority leaves President Macron with a clear mandate to pursue his economic reform agenda.

The benchmark indices recorded a solid up day, after two weeks of sluggish performance. Today, the Sensex dropped a distribution day due to ageing. The new distribution day count for the Nifty and the Sensex stands at 2.0 and 3.0, respectively. Trading very close to their all-time highs, the Indian markets remain in a Confirmed Uptrend.

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