The Nifty experienced its most substantial single-day gain since December 4, marking the start of the week on a positive note, as highlighted by Deepak Jasani, Head Retail Research at HDFC Securities. The surge, contributing to a 1.8 percent rise in Nifty to 21,737.60, was notably influenced by the significant contribution of heavyweight Reliance Industries.
On Monday, the Sensex also recorded a noteworthy increase, closing 1,240.90 points or 1.76 percent higher at 71,941.57. Cash market volumes on the NSE were reported to be high at Rs 1.26 lakh crore, and the advance-decline ratio remained positive at 1.39:1, indicating a widespread upward trend in the market, albeit with broad market indices rising less than Nifty.
As investors anticipate the upcoming interim budget, which is expected to include substantial allocations to infrastructure and energy, Vaibhav Vidwani, Research Analyst at Bonanza Portfolio, highlighted the outperformance of Nifty Oil and Gas and Nifty Energy sectors on Monday, rising by 5.18 percent and 5.17 percent, respectively. The excitement among investors is attributed to the potential growth indicated by government expenditure in these sectors, fostering confidence among investors.
Vidwani also pointed out additional upswings in sectors such as defense and railways, potentially fueled by expectations of targeted fiscal assistance. The top gainers on the Nifty included ONGC, Reliance Industries, Adani Enterprises, Coal India, and Adani Ports, while the top losers were Cipla, ITC, LTIMindtree, Bajaj Auto, and Infosys. With the market showing positive momentum, analysts suggest cautious portfolio adjustments, selectively reducing weight in stocks that have experienced rapid appreciation.
(With Agency Inputs)
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