Renewed FII buying lifts key indices

Mumbai Benchmark equity indices Sensex and Nifty rallied for the second straight session on Monday following encouraging domestic macroeconomic data amid a firm trend in global markets. Fresh foreign fund inflows and intense buying in IT and commodity stocks also bolstered sentiment, traders said. The BSE benchmark Sensex climbed 240.98 points or 0.37 per cent to settle at 65,628.14. During the day, it jumped 296.75 points or 0.45 per cent to 65,683.91. The Nifty rose 93.50 points or 0.48 per cent to end at 19,528.80.

“Recent domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit-booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment,” said Vinod Nair, head (research) at Geojit Financial Services.

“The daily momentum indicator has a positive crossover, which is a buy signal. We believe that the Nifty is in the process of retracing the fall it has witnessed from 19,992 to 19,223 and hence the pullback is likely to last over the next few trading sessions. On the upside, we expect the Nifty to target levels of 19,650 points. In terms of levels, crucial support zone is placed at 19,420-19,360 and immediate hurdle is placed at 19,650-19,700,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas. “Global Stocks were higher on Monday following a report that signalled the US jobs market, while still healthy, shows some signs of cooling, raising hopes for an easing of interest rate hikes. Announcement of fresh stimulus measures from China, cutting down-payment requirements for first and second-time home buyers and lowered rates on existing mortgages also helped sentiments,” said Deepak Jasani, head (retail research), HDFC Securities. Foreign Institutional Investors (FIIs) were buyers on Friday as they bought equities worth Rs 487.94 crore, according to exchange data.