Stock markets snap two-day losing streak, post marginal gains on Monday

Equity markets ended with marginal gains on Monday after a choppy trading tracking mixed global cues and mounting Covid cases in India. The Nifty rose 21.2 points, or 0.19%, to close at 11,355.05 whereas the Sensex rose 60.05 points, or 0.16%, to close at 38,417.23.

The markets swung between gains and losses throughout the day. They ended in the green because of buying in RIL and certain consumer companies. Other markets in Asia were also trading mixed which capped gains for Indian equities.

According to Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services, there will likely be more stock-specific action going ahead. “On the domestic front, the border tension with China and rising coronavirus infections capped the upside for the market. India has now surpassed Brazil to become the second-highest infected country. Going ahead, while the overall market structure remains positive; we expect more of sector or stock-specific actions.

Foreign portfolio investors sold stocks worth $9.1 million whereas domestic institutional investors sold stocks worth $111.7 million. The futures and options segment saw a turnover of Rs 13.27 lakh crore, against the six-month average of Rs 15.42 lakh crore. The cash markets saw a turnover of Rs 46,538.14 crore.

“The reward-risk balance is a bit muddled at current prices and a lot will depend on the performance of the financials sector, which, in turn, will depend on the extent of normalisation of economic activity over the next few months,” said Kotak Institutional Equities.

Major losers on the Nifty were M&M, UPL, Bajaj Finance, GAIL, and NTPC, down by 3.43%, 2.61%, 2,47%, 2.24% and 2.22%. Significant gainers were Bharti Infratel, HDFC Life, Dr Reddy’s Laboratories, ITC, and Hindustan Unilever, up by 5.75%, 3.28%, 2.52%, 1.93%, and 1.9%.