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The Indian stock market witnessed broad-based buying on Monday, August 4, which helped benchmark indices—the Sensex and the Nifty 50—snap their two-day losing streak amid largely positive global cues and weakness in the US dollar.

The Sensex rose 419 points, or 0.52 per cent, to end at 81,018.72, while the Nifty 50 settled at 24,722.75, up 157 points, or 0.64 per cent.

The mid and small-cap segments outperformed. The BSE Midcap index jumped 1.11 per cent, while the Smallcap index rose 0.76 per cent.

Widespread buying lifted the overall market capitalisation of firms listed on the BSE to nearly ₹449 lakh crore from ₹444.5 lakh crore in the previous session, making investors richer by about ₹4.5 lakh crore in a single session.

The domestic stock market rose, tracking positive global cues, as speculation about a potential US Fed rate cut in September gained momentum following weaker-than-expected US jobs data for July.

US nonfarm payrolls rose by 73,000 jobs in July, compared to a forecast of 1,10,000 jobs in a Reuters poll of economists.

The weak US jobs data has fuelled the prospects of the Federal Reserve cutting interest rates in September.

The weakness in the US dollar may have also contributed to the strong buying interest in the Indian stock market. The dollar index fell by over half a per cent, while the Indian rupee appreciated by a similar margin, boosting investor sentiment in domestic equities.

"A weakening US dollar, along with robust monthly auto sales and encouraging quarterly results from leading automakers, helped renew investor interest in these sectors," said Vinod Nair, Head of Research, Geojit Investments Limited.

"The Q1 earnings summary indicates that consumption-driven companies are benefiting from a rebound in volume demand. Meanwhile, rising unemployment and slower job creation in the US have reinforced expectations of a potential Fed rate cut. However, there still remains room for caution due to high US tariffs," Nair said.

As many as 43 stocks ended higher in the Nifty 50 index, with Hero MotoCorp (up 5.18 per cent), Tata Steel (up 4.08 per cent), and Adani Ports (up 3.56 per cent) ending as the top gainers.

Shares of Power Grid Corporation (down 1.12 per cent), HDFC Bank (down 0.88 per cent), and ONGC (down 0.70 per cent) were the top losers in the index.

Nifty Bank ended flat, while the Financial Services and FMCG indices slipped by 0.06 per cent and 0.10 per cent, respectively.

On the other hand, Nifty Metal jumped 2.48 per cent. Realty (up 1.77 per cent), Auto (up 1.61 per cent), IT (up 1.60 per cent), Media (up 1.51 per cent), Consumer Durables (up 1.37 per cent), and PSU Bank (up 1.26 per cent) also clocked solid gains.

Vodafone Idea (41.32 crore shares), Jayaswal Neco Industries (13.14 crore shares), and PC Jeweller (12.12 crore shares) were the most active stocks in terms of volume on the NSE.

Some 12 stocks, including Hindustan Fluorocarbons, Neil Industries, Roadstar Infra Investment Trust, Abram Food, and Sarda Energy & Minerals, surged over 15 per cent on the BSE.

Out of 4,307 stocks traded on the BSE, 2,295 advanced, while 1,834 declined. Some 178 stocks remained unchanged.

As many as 124 stocks, including Bosch, HDFC Asset Management Company, and TVS Motor Company, hit their 52-week highs in intraday trade on the BSE.

TCS, Ramkrishna Forgings, and Indian Energy Exchange (IEX) were among the 125 stocks that hit their 52-week lows on the BSE.

According to Shrikant Chouhan, the head of equity research at Kotak Securities, after a sharp correction on intraday charts, the market has formed a reversal pattern, and on daily charts, it has formed a bullish candle, which is largely positive.

"We are of the view that, in the short term, the market's texture is weak but oversold. Hence, a sharp technical bounce back is not ruled out from the current levels," said Chouhan.

"For day traders, 24,550 and 24,500 would act as key support zones, while 24,850-24,950 could be the key resistance areas for the bulls. However, below 24,500, the sentiment could change and traders may prefer to exit their long positions," Chouhan said.

Rupak De, Senior Technical Analyst at LKP Securities, said on the hourly chart, the Nifty has reclaimed the 21EMA, indicating improving sentiment.

"The RSI has exhibited a positive divergence again, pointing towards improving momentum. Moreover, on the daily chart, a bullish Harami pattern has formed, signalling waning bearishness that could lead to a recovery in the short term. On the higher end, it might move towards 24,850 and 25,000. Support on the lower end is placed at 24,650 and 24,500," said De.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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