The Indian equity benchmarks clocked their longest winning streak of seven days on Tuesday led by gains in index heavyweights like Kotak Mahindra Bank, ICICI Bank, ITC, Reliance Industries, HDFC Bank and HDFC. The Sensex rose as much as 421 points and Nifty 50 index moved above its important psychological level of 17,700. The Sensex ended 311 points higher at 60,158 and Nifty 50 index advanced 98 points to close at 17,722.
"Nifty opened gap up and strengthen throughout the session to close with gains of 98 points (+0.6%) at 17722 levels. Except IT, Realty and Consumer Durables, all sectors ended in green. Metals and Banking stocks were major gainers, which were up more than 1%. Post the projection of normal monsoon by IMD, sectors like Auto and microfinance were in momentum. Strong pre-quarterly update by Bank of Baroda lifted the sector," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
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"Realty sector saw some profit booking after witnessing smart rally in last few days. Nifty has gained for seventh consecutive day supported by FIIs being consistent buyers. We expect market to remain positive to sideways with start of Q4 earning season. Investors would watch for release of inflation data by US, China and India to get cues on central bank action. Investors will also await FOMC meeting minutes for further insights," Khemka added.
Twelve of 15 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Metal index's 1.8 per cent. Nifty Bank, Metal, PSU Bank, Private Bank, Financial Services and FMCG indexes also rose around 1 per cent.
On the other hand, IT, Realty and Consumer Durable indices closed lower.
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Mid- and small-cap shares witnessed buying interest as Nifty Midcap 100 index rose 0.5 per cent and Nifty Smallcap 100 index advanced 0.4 per cent. Kotak Mahindra Bank was top Nifty gainer, the stock rose 4.62 per cent to close at Rs 1,840.
"Kotak Mahindra Bank has released their March 2023 shareholding pattern and as per our shareholding analysis, the foreign holding has dropped down to 41.22% (down 1.47% QoQ) and this could result in foreign headroom moving to 25.05% versus 22.38% currently . The foreign headroom is just above the required threshold of 25% and now could result in change of adjustment factor to 1 from 0.50 currently," brokerage firm Nuvama Group said in a report.
As the shareholding was released before the MSCI price cutoff date for May 23 review and thus the possible weight up in Kotak Bank could happen in May 23 review itself, the brokerage firm noted. JSW Steel, Eicher Motors, Bajaj Auto, Tata Steel, ITC, ICICI Bank, Hindalco, Bajaj Finserv and Maruti Suzuki also rose between 1-4 per cent.
On the flipside, TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Asian Paints, Tata Motors and Tata Consumer Products were among the losers. The overall market breadth was positive as 2,244 shares ended higher while 1,303 closed lower on the BSE.
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