Nifty ended higher on the second consecutive day; Volatility index highest in 19 months

Indian equity indices reversed from day low to end higher on Monday. Nifty opened at 22027.95, a gap down of 27.25 points from Friday’s close and made an intraday high of 22131.65 and closed at 22104.05 up 48.85 points or 0.22%. The gains were majorly due to increase in heavy-weight stocks like HDFC Bank, ICICI Bank and TCS. While Tata Motors, Reliance Industries, Bharti Airtel, State Bank of India, and NTPC weighed on the index.

The broader market ended on the mixed note; The S&P BSE Mid-Cap index rose 0.36% while the S&P BSE Small-Cap index declined 0.23%. On BSE, 2,176 stocks declined, 1,780 stocks advanced and 131 remained unchanged.

Among the sectoral indices, the Nifty Pharma index (up 1.77%), the Nifty Healthcare index (up 1.58%) and the Nifty Metal index (up 1.31%) outperformed the Nifty 50 index. Meanwhile, the Nifty Auto index (down 1.68%), the Nifty PSU Bank index (down 1.23%) and the Nifty Oil & Gas index (down 0.75%) underperformed the Nifty 50 index.

The index on the daily time frame reversed to create a bullish candlestick pattern after successfully holding its 21,830 support level. It appears that the short-term bottom has been reached based on the pattern. A trend reversal might be taken into consideration after the index moves decisively above the immediate hurdle of 22,250.

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• The Sensex and Nifty 50 fully recovered from the day’s lows on May 13 and closed in green after falling almost 1 percent each in the morning trade. Commenting on the benchmarks pulling away from their day’s lows, Ajit Mishra, SVP of Research at Religare Broking, said that this rebound could merely be a breather. He cautioned against overinterpreting the bounceback, noting that the India VIX is still up by 12 percent.

• Zomato reported a net profit of Rs 175 crore for the January-March (Q4) period, marking the fourth straight quarter of the food aggregator’s earnings coming in the green. Revenue rose 73 percent year-on-year to Rs 3,562 crore at a time when the broader e-commerce sector is reeling under the pressure of high inflation and muted demand. During the same quarter last year, Zomato had posted a net loss of Rs 188 crore and a revenue of Rs 2,056 crore.

• India’s imports of goods from countries with which it has a free trade agreement like the UAE, South Korea, and Australia grew about 38 per cent during 2019-24 fiscal years to $187.92 billion, according to think tank GTRI. On the other hand, the country’s exports to the FTA (free trade agreement) partners rose 14.48 per cent to $ 122.72 billion in 2023-24 from $ 107.20 billion in 2018-19.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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