The Indian stock market benchmarks, the Sensex and the Nifty 50, snapped their five-day losing streak on Monday, January 12, on value buying in an oversold market after indications that the US and India were working towards resolving their tarde deal differences.
The benchmarks staged a sharp recovery during the session. The 30-share pack was down more than 700 points at 82,861 at one point in the first half of the session, but finally ended at 83,878.17, up 302 points, or 0.36%. From the intraday low, it was a solid 1,017-point rebound. The Nifty 50 closed the day with a gain of 107 points, or 0.42%, at 25,790.25.
The mid and small-cap segment, however, failed to mirror the benchmarks’ performance. The BSE Midcap index fell 0.41%, while the Smallcap index crashed 0.68%.
The overall market capitalization of BSE-listed firms rose to nearly 469 lakh crore from nearly 468 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market rise today?
Market benchmarks jumped on value buying after five days of heavy selloff, which had dragged them down by more than 3%.
Sentiment received a boost after US Ambassador-designate Sergio Gor stated that India and the US are actively engaged in sealing a trade deal.
“No country is as essential as India for Washington, and both sides are actively engaged in firming up a trade deal. Real friends can disagree, but always resolve their differences in the end,” PTI quoted Gor as saying.
“The Indian stock market rebounded from the day’s lows as investor sentiment improved following favorable remarks on the trade deal by the US Ambassador ahead of the next round of negotiations. This positive undertone provided a lift to overall market sentiment,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Value buying was also evident in consumer and banking stocks, as investors sought opportunities after recent corrections, supported by expectations of stronger Q3 earnings and improving demand,” said Nair.
2. Top gainers in the Nifty 50 index
Coal India (up 3.39%), Tata Steel (up 2.75%), and Asian Paints (up 2.50%) were the top gainers in the Nifty 50 index.
3. Top losers in the Nifty 50 index
Infosys (down 1.02%), Tata Motors Passenger Vehicles (down 1%), and Bajaj Finance (down 1%) ended as the top losers.
4. Sectoral indices today
Nifty Metal clocked a strong growth of 2%, while Nifty PSU Bank and FMCG also saw healthy gains of 0.65% and 0.59%, respectively.
Nifty Bank rose 0.34% to end at 59,450.50.
On the other hand, Nifty Media (down 1.55%) and Realty (down 1.22%) suffered significant losses.
5. Most active counters in terms of volume
Vodafone Idea (103.7 crore shares), IFCI (27.30 crore shares), and Tata Silver Exchange Traded Fund (22 crore shares) were the most active counters in terms of volume on the NSE.
6. Seven stocks jump more than 15% on the BSE
JTL Industries, Faze Three, and Rukmani Devi Garg Agro Impex were among the seven stocks that jumped more than 15% on the BSE.
7. Advance-decline ratio
Out of 4,485 stocks traded on the BSE, 1,468 advanced, while 2,837 declined. Some 180 stocks remained unchanged.
8. Over 80 stocks hit 52-week highs
Some 82 stocks, including Alkem Laboratories, Emcure Pharmaceuticals, and Tamilnad Mercantile Bank, hit their 52-week highs on the BSE.
9. 532 stocks hit 52-week lows
As many as 532 stocks, including ITC, IRCTC, Tube Investments of India, United Breweries (UBL), and Page Industries, hit their 52-week lows on the BSE.
10. Nifty’s technical outlook
Ajit Mishra, SVP- Research at Religare Broking, said the Nifty’s ability to hold the medium-term moving average around 25,600 and move back towards the 25,800 zone is encouraging, though sustainability will be crucial, with a strong resistance placed in the 25,900–26,000 band.
Rupak De, Senior Technical Analyst at LKP Securities, noted that on the daily chart, the index has formed a piercing line pattern, indicating the possibility of a bullish reversal after a few days of selling pressure. On the hourly chart, the RSI has moved out of the oversold zone, indicating early signs of recovery.
“We would remain watchful, as the Nifty faces resistance in the 26,000–26,100 zone, where selling pressure may re-emerge. On the lower end, immediate and crucial support is placed at 25650,” said De.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
