Starting the week on a strong note, the benchmark indices gained up to 0.74% on Monday, tracking positive cues from major Asian equity markets. The Sensex jumped 582.95 points, or 0.72%, to close at 81,790.12, led by IT and banking shares. The Nifty also rose 183.40 points, or 0.74%, to end above the 25,000 mark at 25,077.65. Both indices extended their winning streak for the third consecutive session.
In the last three sessions, both the indices have risen 1.90%, with the Sensex gaining 1,522.50 points and the Nifty rising 466.55 points.
What did Ajit Mishra say?
“The rally was supported by a combination of robust domestic triggers and encouraging global factors,” said Ajit Mishra, SVP – Research, Religare Broking. “Positive business updates from leading private banks bolstered sentiment, while the upward revision of CGHS (central government health scheme) rates added traction to healthcare stocks.
Additionally, festive season demand and optimism around upcoming IPOs kept the undertone constructive. Globally, optimism surrounding potential US Fed policy easing and strength in Asian markets fueled risk-on appetite,” he added.
Asian peers also advanced sharply, with Japan’s equity index surging 4.75%, South Korea up 2.70%, and Taiwan rising 1.45%.
What did Vinod Nair say?
“Investors now look to second quarter earnings results for further guidance. Though expectations remain moderate, the market is more optimistic about Q3 results, led by a rise in consumer demand,” said Vinod Nair, Head of Research, Geojit Financial Services.
Foreign portfolio investors have sold shares worth Rs 313.77 crore while the domestic mutual funds bought shares worth Rs 5,036.39 crore, according to provisional data by the BSE.
The overall market breadth was, however, negative as 2,453 stocks declined against 1,827 gainers on the BSE. While the BSE Midcap index rose 0.68%, the BSE Smallcap index slipped 0.20%.
Among sectors, IT, TECK, banking, healthcare and oil & gas were the top performers, gaining up to 2%. In contrast, metals, commodities and utilities were the top laggards, falling up to 0.92%.
Investors’ wealth increased by Rs 2.03 lakh crore as the BSE’s total market capitalisation rose to Rs 459.84 lakh crore.
TCS, Tech Mahindra, Axis Bank, Eternal and Infosys were the top Sensex gainers, advancing up to 2.96%, while Tata Steel, Adani Ports, Power Grid, Titan Company and Trent were the top losers, declining up to 1.88%.