Sensex trades higher echoing Asian, US market cues

• Indian equity indices, Sensex and Nifty, surged due to positive cues from Asian and US markets.
• Midcap and smallcap stocks also saw a rise, indicating a broad-based rally and buoyant investor sentiment.
• Top gainers included JSW Steel, Tata Steel, and M&M, while Titan, Axis Bank, and Tata Motors were among the top losers.
• The market's trajectory will be influenced by global cues, monetary policy decisions, and the buying/selling position of institutional investors.

The bustling financial hub of Mumbai witnessed a positive start to the Indian equity indices on Friday, September 20. This optimistic beginning was largely influenced by encouraging cues from Asian and US markets, reflecting the interconnectedness of global financial markets.

As of 9.46 a.m., the Sensex, a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange, was up by 82 points or 0.10 per cent, standing at 83,267.

Concurrently, the Nifty, a benchmark Indian stock market index for the equity market, was up by 40 points or 0.16 per cent, standing at 25,455.

Midcap and Smallcap Stocks Witness Buying Interest

The positive trend was not confined to the large-cap stocks alone. The midcap and smallcap stocks also witnessed buying interest. The Nifty midcap 100 index, which represents the midcap segment of the market, was up by 313 points or 0.53 per cent, standing at 59,665.

Similarly, the Nifty smallcap 100 index, representing the smallcap segment, was up by 137 points or 0.72 per cent, standing at 19,282. The green wave was seen across almost all sectoral indices.

The sectors that emerged as major gainers included Auto, PSU Bank, Financial Services, FMCG, Metal, Realty, Energy, and Infrastructure. This broad-based rally underscores the buoyant investor sentiment prevailing in the market.

Market Analysis and Global Trends

In the Sensex pack, several companies emerged as top gainers. These included JSW Steel, Tata Steel, M&M, Maruti Suzuki, Bharti Airtel, L&T, Nestle, Reliance, Bajaj Finserv, HUL, Sun Pharma, SBI and Kotak Mahindra Bank. On the other hand, Titan, Axis Bank, Tata Motors, NTPC, Bajaj Finance, IndusInd Bank, TCS and UltraTech Cement were among the top losers.

Hardik Matalia, a Derivative Analyst, offered his perspective on the market movement. He stated, After a positive opening, Nifty can find support at 25,350 followed by 25,300 and 25,250. On the higher side, 25,500 can be an immediate resistance, followed by 25,600 and 25,650. His analysis provides valuable insights into the potential trajectory of the Nifty.

Institutional Investors and Market Movement

The bullish sentiment was not confined to the Indian market alone. Most of the  markets in Asia, including Tokyo, Hong Kong, Seoul and Bangkok, were also in the green. However, the markets of Shanghai and Jakarta were trading in the red. The US markets had closed in the green on the previous day, Thursday. The yen, the official currency of Japan, remained volatile ahead of a Bank of Japan monetary policy decision.

Traders were eagerly anticipating clues about potential tightening. This was significant in light of Japan's consumer price index inflation aligning with expectations in August, indicating higher wages and increased consumption. On September 19, the foreign institutional investors (FIIs) turned net sellers as they sold equities worth Rs 2,547 crore. On the other hand, domestic institutional investors extended their buying as they bought equities worth Rs 2,012 crore on the same day.

In conclusion, the performance of the Indian equity market on September 20 was a reflection of the broader trends in the global financial markets. The positive opening, the broad-based rally, and the buying interest in midcap and smallcap stocks all point towards a buoyant investor sentiment.

(With inputs from IANS)