Sensex Gains 1100 Points On Low Level Buying; Broader Markets Outperform

Indices are on a winning run for the second straight day, with Sensex at the time of writing this copy up by over 2% or 1100 points at 52,697, while Nifty zoomed 326 points to 15,675 levels. Broader markets that were battered in the previous session outperformed headline indices with gains of 2.9% on the Nifty Midcap 100.

Low level buying, strong global cues as well as analysts positive comments all led the market to gain in trade today and regain some lost momentum back.

In a report global brokerage firm CLSA said its propreitary India Bull-Bear Index signals a crash in equity market sentiment to 92 percent bearish from 99 percent bullish nine months ago."Our back-testing shows 90-95 percent bearish points to have produced good 3M/12M returns in nearly all instances since 2007 barring the deep bear markets of 2008 and 2020. A sharp fall in trading volume may also suggest waning selling intensity," said the broker.

Top Nifty gainers in trade today are stocks like Titan (up over 5%), Hindalco, JSW Steel, SBI and Tata Motors, while Apollo Hospital emerges as the loser from the Nifty pack.

Among Nifty sectoral indices, all sectors are zooming in trade today, with PSU Bank, realty and IT leading the gains.

Crude oil prices have also declined with Brent crude trading close to $115 per bbl. For many companies crude oil is the major input item, its price reduction will lead to lowering of input and overall production costs. Resultantly profit margins and hence the stock price of associated companies shall see gains.

"Fall in crude oil prices has given some positive cues to markets like India and resulted in fall in bond yields. Nifty seems to have stabilised on a day when the US markets are shut. Having formed a double bottom at 15,183-15,191, Nifty could head towards 15,670, if no new negative developments crop up on the horizon", said Deepak Jasani, Head of Retail Research, HDFC Securities.

Meanwhile, European markets are also trading firm with French CAC up by over 1 percent.

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