Stocks surge on unabated buying support on global cues

Mumbai: Benchmark stock indices BSE Sensex and NSE Nifty surged by nearly two per cent on Monday, extending their winning run to a third straight day on gains in index major Reliance Industries, Infosys and TCS amid a firm trend in global equities.

The 30-share BSE Sensex rallied 1,041.08 points or 1.90 per cent to settle at a four-week high of 55,925.74. During the day, it soared by 1,197.99 points or 2.18 per cent to touch a high of 56,082.65.

"Markets ended the 3-week long consolidation phase and gained over two per cent, tracking firm global cues. Markets have regained some strength citing the less hawkish tone of the US Fed in the recently released meeting minutes. On the domestic front, the early onset of monsoon has further lifted sentiments," said Ajit Mishra, V-P (research), Religare Broking Ltd.

Vinod Nair, head (research) at Geojit Financial Services, adds that "US stocks were boosted on softening inflation worries which will be a crucial factor in deciding the tone of the upcoming Fed policy meeting. Easing of long-running lockdown in China also helped in lifting sentiment across Asian markets. A near-term trend reversal is visible in the domestic market, supported by valuation comfort and positive trend in the global counterparts.

"Nifty rose for the third consecutive session on May 30 following positive global cues due to China easing Covid curbs and sharp Friday gains on the Wall Street. Some local factors helping the mood include early arrival of monsoon in Kerala raising hopes of a favourable impact on agri crops," said Deepak Jasani, head (retail research), HDFC Securities.

Foreign institutional investors (FIIs) continued their selling spree as they offloaded shares worth Rs 1,943.10 crore on Friday, according to stock exchange data.

As many as 26 Sensex stocks ended in the green. The broader NSE Nifty jumped 308.95 points or 1.89 per cent to settle at nearly four-week high of 16,661.40 with 45 of its constituents ending with gains. In the three day rally to Monday, Sensex jumped by 4 per cent or 2,176 points, while Nifty soared by 635 points or 3.92 per cent. Reports of early onset of monsoon in Kerala and gains in global equities following easing inflation concerns and less hawkish tone of the US Federal Reserve in the recently released minutes boosted the investor sentiment.

In the broader market, the BSE midcap jumped 2.28 per cent and smallcap gained 2.23 per cent. All BSE sectoral indices ended higher, with consumer durables jumping 4.41 per cent, followed by realty (3.96 per cent), Information Technology (3.75 per cent), teck (3.53 per cent), consumer discretionary goods & services (2.85 per cent) and energy (2.72 per cent).

Among Sensex stocks, Titan rose the most by 4.94 per cent. Mahindra & Mahindra rallied 4.69 per cent, Infosys by 4.57 per cent, L&T by 3.77 per cent and Rech Mahindra by 3.5 per cent.