Stocks move higher on news indicating strong economic recovery

| Updated: August 2, 2021 6:00 pm

The first trading day of the month was profitable for the investors as the stock market, buoyed by series of positive news, closed with gains. Investor sentiment was bullish as auto sales numbers, recovery in PMI index and tax collections indicated strong recovery underway in the country’s economy.

At the close, the Sensex was up by 363 points to 52,950 and Nifty gained 122 points to close at 15,885. The strong up move in the market was supported by gains in Reliance, Infosys, TCS, HDFC and Axis Bank. On the other hand, HDFC Bank, Tata Steel and ICICI Bank lost due to profit booking.

“The market opened with a gap up and remained at an elevated level for most of the day. After the open, it moved in a narrow range, which suggests that traders are cautious near the resistance zone of 15,900 on the Nifty. For the rally to sustain, the market has to stay above 15,800 for a breakout,” Kotak Securities said after the market close.

All the sectoral indices closed with gains, however, Real Estate, Auto and IT jumped the most. All-round buying was evident as the number of shares advancing was higher than the declines. Also, MidCap and SmallCap indices gained over one per cent.

On the back of revival in demand and strong economic recovery, real estate shares continued their up move. The Realty index on the NSE closed up 4.79%. It has gained almost 21% in last one month.

Automobile shares were also in the limelight on strong July vehicle sales numbers. Share prices of Ashok Leyland, Maruti Suzuki, Tata Motors and Escorts all gained. 

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