The benchmark equity indices on the BSE and National Stock Exchange (NSE) extended their gains for the third consecutive session and ended nearly 2 per cent higher on Monday led by sharp gains in information technology (IT) and banking stocks amid positive cues in the global market.
The S&P BSE Sensex rallied 1,041.08 points (1.90 per cent) to end at 55,925.74 while the Nifty 50 settled at 16,661.40, up 308.95 points (1.89 per cent). Both the indices had opened over 1 per cent higher earlier in the day and extended gains as the session progressed.
On the Sensex pack, Titan Company, Mahindra & Mahindra (M&M), Inosys, Larsen & Toubro (L&T), tech Mahindra, HCL Technolgies, Tata Consultancy Services (TCS), Reliance Industries (RIL) and Ultratech Cement were the top gainers on Monday while Kotak Mahindra Bank, Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories and ITC ended in the red.
All sectoral indices ended higher on Monday. The Nifty IT surged 3.88 per cent, Nifty Media rose 3.21 per cent, Nifty PSU Bank climbed 3.21 per cent and Nifty Realty rallied 4.06 per cent.
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In the broader market, the S&P BSE MidCap index ended at 23,031.29, up 513.55 points (2.28 per cent) while the S&P BSE SmallCap settled at 26,192.30, up 570.73 points (2.23 per cent). On NSE, the volatility index or India VIX fell 6.98 per cent to 19.98.
Going ahead, market investors will look forward to the outcome of insurance behavior LIC’s Q4 earnings later in the day. In an exchange filing last week, the company reported that its board will also consider payment of dividend.
Deepak Jasani, Head of Retail Research at HDFC Securities in a post market note said, “Indian stocks were anyway due for a bounce after continuously underperforming since early April 2022. 16,800-16,850 level on the Nifty could be tough to breach in the near term .”
“The primary focus in the coming weeks will be on central banks’ policy measures to stabilize inflation. Changes in oil prices and amendments to import and export duties might play a role in assessing the market’s trajectory. The downside in Indian equities is likely to be limited as most of the macro risks are priced in, while the valuation and excess global liquidity are likely to provide support. However, the continued selling by FIIs and plunging rupees are likely to have economic implications in the near term. Globally, the Russia-Ukraine crisis and supply chain disruptions continue to impact global and Indian equities,” said Arafat Saiyed, Senior Research Analyst at Reliance Securities.
World shares rose on Monday and the dollar was pinned near five-week lows on hopes of an eventual slowdown in US monetary tightening following sharp interest rate hikes in June and July. Helping to mellow the mood was news that Shanghai authorities would cancel many restrictions on businesses resuming work from Wednesday, easing a city-wide lockdown that began two months ago.
The MSCI’s benchmark for global stocks rose 0.6 per cent to its highest in more than four weeks by 0745 GMT, driven by a positive open in Europe and strong gains in Asia overnight. The index is up 0.4 per cent so far this month. The pan-European STOXX 600 equity benchmark gained 0.7 per cent, while Japan’s Nikkei added 2.2 per cent and Chinese blue chips firmed 0.7 per cent.
Although Wall Street will be shut for Memorial Day, US futures were trading. S&P 500 e-minis rose 0.9 per cent, having rallied 6.6 per cent last week in their best run so far this year, while Nasdaq e-minis added another 1.3 per cent.
-global market input from Reuters