Volatility was back to scare stock markets on Monday, taking domestic benchmark indices to dance between gains and losses. At the closing bell, Sensex was up 99 points or 0.27% at 36,693 points while the Nifty 50 ended above the 10,800 mark. “In a volatile day of trade, the market gave up almost all of its early gains, before closing out the day with a positive bias. Investors are advised to be cautious and to look at stock-specific movements with regards to earnings announcements and the commentary,” said Vinod Nair, Head of Research at Geojit Financial Services.
The fear gauge resurfaces: India VIX opened at 24.9 on Monday and went down till 22 mark. However, the high of the volatility index was at 25.9 before closing on 25.1. This volatility forced Sensex and Nifty to scale down from gains of over 400 points to end up by only 99 points.
Reliance Industries market cap: Reliance Industries was among the top gainers on Sensex today, as the stock price hit a new 52-week high. However, the highlight of the day was RIL becoming the first Indian company to have a market capitalization of over Rs 12 lakh crore. This is a new milestone for the oil-to-telecom giant that will hold a virtual AGM this week.
Sectoral watch: Financials were seen dragging the indices down on Monday. Bajaj Finance, HDFC, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank were all down in the red. “Financials ended negative while IT and FMCG led the sectoral gains. Markets are hoping for further stimulus measures from the RBI, following expectations of a softening of inflation rates, which would give RBI room for further rate cuts,” Vinod Nair said.
IPO Watch: Rossari Biotech IPO started receiving bids from today and at 4:20 PM the issue was subscribed 41%. The issue saw rousing responses from retail investors who have subscribed 71% of their portion. QIBs have bid 11% while NIIs have bid were the least.
Technical talk: “We were unable to sustain above the 10850 level and gave up the gains of the morning quite swiftly. The Nifty retraced to take support around the 10750 level and bounced to close above 10800. The range continues to test the patience of traders! However one must be cautious in a range-bound market and should only enter trades on breakouts on the upside and breakdowns on the downside,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments