Strong global cues spur key indices
Buying in index heavyweights Reliance Ind, ICICI Bank and M&M stocks lift indices for second session; Positive trend in global markets; End to the US debt ceiling uncertainty and hopes on rate hike pause cushioned mkts
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Mumbai Benchmark indices Sensex and Nifty closed higher for the second straight session on Monday, boosted by buying in index heavyweights Reliance Industries, ICICI Bank and M&M stocks amid a positive trend in global markets.
The 30-share BSE Sensex climbed 240.36 points or 0.38 per cent to settle at 62,787.47. During the day, it jumped 396.09 points or 0.63 per cent to 62,943.20. The NSE Nifty advanced 59.75 points or 0.32 per cent to end at 18,593.85.
“Optimism in global equities aided the local market sentiment. Also, the end to the US debt ceiling uncertainty and expectations of a rate hike pause by the US Fed provided some fodder to the struggling markets,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. “Majority of the sectors ended in the green, except FMCG, IT, and PSU Bank. Auto and Private Banks were top gainers among the sectors. Nifty is gradually inching higher towards its life highs supported by smart gains index heavyweights.
Auto and financials are likely to be in focus ahead of the RBI policy meeting this week and are expected to remain in momentum,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. “Global stocks followed Wall Street mostly higher on Monday after strong US hiring data suggested a possible recession might be further away, while smaller wage gains stoked hopes inflationary pressures are weakening,” said Deepak Jasani, Head of Retail Research, HDFC Securities. “Markets started the week with modest gains, tracking firm global cues. The rebound in the US markets has prompted this uptick, but we need stability on the global front for a new high,” said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 658.88 crore on Friday, according to exchange data. In the broader market, the BSE smallcap gauge climbed 0.51 per cent, and the midcap index gained 0.29 per cent. Among the indices, auto jumped 1.23 per cent, capital goods climbed 1.14 per cent, industrials (1.07 per cent), utilities (0.91 per cent) and services (0.56 per cent). IT and teck were the laggards.
