Nifty and Sensex Rebound: Oil & Gas, Media, and Metal Indices Lead the Rally
Nifty and Sensex showed a significant recovery on August 7, snapping a three-day losing streak and rising by over one percent. The market experienced broad-based gains, with all sectors and broader markets trading in the green.
Market Performance Overview
The India VIX, an indicator of market volatility, dropped by over nine percent, settling around the 17 level by mid-day. This decline in volatility supported the positive sentiment across the markets.
At 12:32 am, the Sensex surged 736 points or 0.94 percent, reaching 79,329, while the Nifty climbed 267.4 points or 1.11 percent, standing at 24,260. The broader markets also recovered, with the Nifty Smallcap 100 and Nifty Midcap 100 indices both advancing by nearly two percent.
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Sectoral Trends
All sectoral indices were trading positively, with significant gains in Nifty Oil & Gas, Nifty Media, and Nifty Metal, each rising over two percent. The IT and Pharma sectors also contributed to the overall market recovery.
Fundamental View
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that despite heavy selling by Foreign Institutional Investors (FIIs) in the cash market over the past three days, Domestic Institutional Investors (DIIs) provided countervailing support. He emphasized the importance of focusing on large-cap investments over mid and small caps due to current market valuations.
Technical View
According to Sameet Chavan, Head Research, Technical and Derivative at Angel One, the immediate resistance for Nifty is at 24,250, with a challenging barrier between 24,350 and 24,400. For support, he identified the 23,900 – 23,850 range, cautioning traders to monitor these levels closely and stay informed about global developments.
Key Movers
Top Nifty Gainers:
- ONGC
- Bajaj Auto
- Coal India
- Adani Enterprises
- Adani Ports
Top Nifty Losers:
- IndusInd Bank
- Bharti Airtel
- Asian Paints
- Kotak Bank
- Titan
Top Sensex Gainers:
- Adani Ports
- JSW Steel
- M&M
Top Sensex Losers:
- IndusInd Bank
- Bharti Airtel
- Asian Paints
Stock-Specific Moves
Fusion Microfinance: Shares hit the lower circuit after reporting a net loss of Rs 36 crore for the June quarter, compared to a profit of Rs 120 crore in the same period last year.
Gland Pharma: Shares dropped by around 9 percent following a 26 percent year-on-year decline in net profit to Rs 143.8 crore in the April-June quarter, mainly due to lower milestone income.
Conclusion
The rebound in Nifty and Sensex is a welcome relief for investors, indicating a potential shift in market sentiment. As the market dynamics continue to evolve, investors are advised to remain vigilant and consider large-cap investments for stability.
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