The Indian stock market recorded a sharp recovery from intraday lows on Monday, with Sensex and Nifty closing in the green with marginal gains after crashing nearly 1% each in the morning. At the end of the session, Sensex was up around 47 points at 77,616 while Nifty 50 was up only 4 points at 24,211. While the closing figures indicate marginal gains, Sensex rebounded around 759 points from its intraday low, while Nifty 50 recovered 211 points after falling to 24,000.
Here's how analysts read the market pulse
The stock market witnessed a strong intraday recovery from the day’s lows, ending with modest gains amid a positive underlying sentiment supported by encouraging IT business updates and attractive valuations, said Vinod Nair, Head of Research of Geojit Investments.
Another positive development is that despite selling pressure continuing in the global markets driven by concerns over an AI-led valuation bubble, the negative impact on Indian IT stocks has eased in recent weeks, he said, adding that FII selling in the Indian IT sector has also moderated, which could support a future shift in fund flows to India.
“Investor concerns over tensions in the Strait of Hormuz were largely overlooked, while the moderation in crude oil prices during the day provided additional comfort to the market. The initial batch of broader Q1 earnings has come in better than expected, suggesting that earnings downgrades for the quarter may be less severe than previously anticipated. At the same time, Indian market valuations appear more reasonable, indicating a strong start to the Q1 earnings season,” according to Nair.
US stocks
The S&P 500 and the Nasdaq fell on Monday as a fresh escalation between the U.S. and Iran in the Gulf pushed oil prices higher and unnerved investors, while chip stocks extended their recent declines.
Iran and the U.S. exchanged attacks over the weekend and Tehran said it had closed the Strait of Hormuz, a vital conduit for global energy supplies. The escalation undercuts an interim U.S.-Iran agreement signed last month that aimed to reopen the strait and end the war after 60 days of negotiations.
European markets
European shares inched lower on Monday as investors assessed escalating hostilities between the United States and Iran, whichprompted Tehran to shut the Strait of Hormuz, sending oil prices higher.
The pan-European STOXX 600 index fell 0.06%.
Tech view
Nifty 50 witnessed a meaningful recovery as the 24,000 level acted as a crucial support, said Rupak De, Senior Technical Analyst at LKP Securities. He added that on the upside, the index rebounded towards 24,200. The overall sentiment remains bullish, with the bulls successfully defending the 24,000 mark, according to the analyst.
“A strong recovery from the day's low indicates underlying strength in the market. A decisive move above 24,200 could trigger fresh short-term momentum, potentially propelling the index towards 24,500 and higher. On the downside, a decisive breach below 24,000 could weaken the bullish sentiment and shift the near-term bias in favour of the bears,” De concluded.
Most active stocks in terms of turnover
Kalyan Jewellers (Rs 7,892 crore), TCS (Rs 2,678 crore), Infosys (Rs 2,300 crore), Newgen Software (Rs 1,868 crore), HDFC Bank (Rs 1,778 crore), Zensar Tech (Rs 1,761 crore) and Bharti Airtel (Rs 1,498 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 23.45 crore), Kalyan Jewellers (Traded shares: 15.45 crore), Yes Bank (Traded shares: 5.19 crore), Pine Labs (Traded shares: 5.06 crore), Tata Steel (Traded shares: 4.76 crore), Ola Electric Mobility (Traded shares: 4.22 crore) and Suzlon Energy (Traded shares: 4.07 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Newgen Software, Sonata Software, C.E. Info Systems, Kalyan Jewellers, Aegis Vopak Terminal, Pine Labs and RR Kabel were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Aegis Vopak Terminal, JSW Infrastructure, Shyam Metallics, Welspun India, Paytm, Ipca Labs and Laurus Labs.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were J&K Bank, Siemens Energy India, Allied Blenders, Ather Energy, Physicswallah, NLC India and Indian Bank.
52-week low
Among the ones which hit their 52-week lows on NSE included Vedanta.
Sentiment meter favours bulls
Out of the 3,442 stocks that traded on the NSE on July 13, Monday, 1,776 stocks witnessed advances, 1,557 saw declines while 109 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
