How are the Markets Looking ?
In today’s market update, we witnessed another day of consistent growth as the market continues to climb. We have now broken out of the 19,850 mark and are inching closer to the 21,000 milestone. At the closing bell, the market settled at 20,937, with a series of fluctuations throughout the day – opening high, experiencing a minor dip, and finally closing at a new high.
Nifty Heatmap
Let’s have a closer look at the market trends and notable performers. In the Nifty heat map, ITC made a strong comeback, showing a significant increase of 2.5%. L&T also had a positive day, with a gain of 2.5%. Other stocks like TCS, Infosys, and Wipro displayed positive performances as well, while the rest of the market took a corrective break.
Sectoral Overview
The IT sector demonstrated resilience, with a 1.7% rise. Energy stocks continued their relentless rally, showing a 1.6% increase for the month. In fact, energy stocks have witnessed an impressive surge of 15.8% overall. FMCG, PSEs, and commodities sectors also followed suit, with PSEs registering a substantial 19.6% gain over the past 1 month.
On the other hand, pharma, private banks, real estate, autos, and metals took a breather after their continuous upward trajectory. It’s important to note that these sectors didn’t decline, but rather paused to catch their breath amidst their remarkable rally.
For the Nifty, it closed with a 0.4% increase, and an impressive 7.9% gain for the month. Delving deeper into the numbers, we can see that over the course of twelve months, the market has delivered returns of 12.6%. However, interestingly, 8% of those gains have materialised within just the last month. This highlights the characteristic lumpy returns that the market often presents.
Mid & Small Cap Performance
Moving on to the mid-cap and small-cap indexes, both reached new highs at 44,200, respectively. For small caps – although their ascent has slowed down recently, there is a possibility of corrective moves in the near future. A slight correction or consolidation is often a healthy sign for the market.
Bank Nifty Overview
Shifting our focus to the Nifty Bank index, we observed a significant opening at 47,250, which quickly dipped to nearly 46,750, resulting in a 500-point decrease. The index closed near the lower end, suggesting the possibility of some profit-taking. However, overall, the market sentiment remains positive.
Highlight – Nifty IT Index
In the IT sector, after experiencing a slump in the past two sessions, we witnessed a strong comeback, bringing it closer to its all-time high. This sector, which had been trailing behind the other segments, is now catching up, demonstrating a rotational handing-over of batons from one sector to another. This trend ensures that the Nifty maintains its upward trajectory.
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