NEW DELHI: India’s equity market rallied for the fourth straight session on Monday with benchmark indices - Nifty and Sensex - gaining nearly 1% each. The Nifty 50 index rose 1% to close the Monday session at 17,340, while the BSE Sensex climbed 545 points to shut shop at 58,115.
Sensex, which on Monday ended above the 58,000-level for the first time since April 13, has jumped 2,847.01 points or 5.15% in the last four session and the market capitalisation of BSE-listed firms jumped to Rs 270.29 lakh crore during this period, making investors richer by Rs 12.74 lakh crore.
The current rally is being aided by the positive global cues after the Federal Reserve’s denial of a recession in the US and increase in foreign inflows. After turning net buyers in July, foreign institutional investors bought shares worth Rs 2,320.61 crore on Monday, as per exchange data. Positive auto sales data and GST collection rising to touch the second-highest level of`1.49 lakh crore in July 2022 boosted investors’ sentiment on Monday. Tata Motors and Mahindra & Mahindra were the top gainers on the Nifty 50 index, climbing 6.6% and 6.3%, respectively.While equity market analysts at large expect the bull to continue in near future, few experts are advising investors to take a cautious approach.
“The outburst seen after the breach of the 16800 zone (Nifty) depicts the impeccable strength of the bulls when the scenario turns favorable,” said Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One. One should not rule out the factor of profit booking as the Nifty heads towards the crucial resistance gap of the 17450 odd zone. Hence, it is advisable to monitor the profits and regularly trail them for better returns, Krishan added.
Shrikant Chouhan, head of equity research (Retail), Kotak Securities, said, “Nifty is still holding higher high and higher low formation on intraday charts. Since the market is in temporary overbought, we could see a quick intraday correction in the near term.”