Business News: During the first half of the special trading session on May 18, Sensex and Nifty saw marginal movement, closing almost flat, while all 13 major sectoral indices ended in positive territory.
FMCG stocks led the gains, with Nestle India particularly in focus as its shares rose over 2 percent following the rejection of a proposed increase in royalty payment to its parent company by shareholders.
At the close, Sensex was up by 42 points or 0.06 percent at 73,959, and Nifty 50 gained 16 points to reach 22,481.90. Advancing shares outnumbered declining ones, with broader market indices BSE Midcap rising nearly 0.2 percent and BSE Smallcap gaining 1.4 percent.
Technical indicators, along with foreign investors’ buying spree and strength in the US markets, suggest that Indian benchmark indices may find support for further upward movement in the near term.
“Dow Jones closing above 40,000 continues to offer global support for equity markets,” remarked V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, concerns related to elections may induce high volatility in India, he cautioned. Moreover, the recent shift of FIIs turning into buyers might alleviate some market pressure, Vijayakumar added, noting their net purchase of Rs 1,617 crore worth of equities on May 17.
From a technical standpoint, Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, suggested that as long as Nifty 50 remains above the 22,320 level, the rally could extend to 22,600. However, caution is advised as the index approaches the previous resistance of 22,800, Yedve advised, suggesting traders consider profit booking.
The special trading session, focusing on equity and equity derivatives segments, aims to assess the exchanges’ disaster preparedness. Similar to previous sessions, low volumes and less volatility are expected, according to Arun Kumar Mantri, Founder of Mantri Finmart. Traders should anticipate some restrictions, Mantri added.
Global markets saw two out of three major US indices ending higher on May 17, buoyed by data supporting expectations for interest rate cuts by the Federal Reserve. The Dow Jones Industrial Average closed above 40,000 for the first time, contributing to weekly gains across major indices.