Favourable global cues in combination with stronger rupee and upbeat core sector data supported domestic equity markets on Monday
Favourable global cues in combination with stronger rupee and upbeat core sector data supported domestic equity markets on Monday. As a result, the BSE Sensex soared 377.33 points, or 1.35 per cent, to 28243.29, while the NSE Nifty index closed 126.95 points, or 1.47 per cent, higher at 8738.10. Now, Dalal Street is eyeing the bi-monthly Reserve Bank of India’s policy meeting on Tuesday.
Among the 51-components in the Nifty index, 48 stocks ended the day in green with Zee Entertainment surging the most — 5.83 per cent, followed by Eicher Motors (up 4.32 per cent), Maruti Suzuki (up 3.70 per cent), Hero MotoCorp (up 3.52 per cent) and Adani Ports (up 3.17 per cent). On the other hand, TCS, Bharti Infratel and Bosch Ltd slipped 0.91 per cent, 0.42 per cent and 0.25 per cent, respectively. Sectorwise, the BSE Realty index, BSE Consumer Durables, BSE Metal and BSE Auto index gained 3.01 per cent, 2.65 per cent, 2.45 per cent and 2.44 per cent, respectively. Other sectoral indices also settled the day in positive terrain.
Jayant Manglik, president, retail distribution, Religare Securities said, “Nifty made a strong comeback on Monday and gained over one & half per cent, thanks to favourable domestic cues and supportive world markets. It witnessed a gap up start, tracking firm global markets and gained momentum with the news of easing geo-political tension and upbeat core sector data. Besides, report showing noticeable foreign fund inflow in equity markets in passing month, further boosted the sentiments. And lastly, growing expectation of rate cut in upcoming monetary policy review meet, aided to the momentum and helped index to close around the day’s high.”
Buying activity was witnessed in auto stocks as festive season demand boosted companies’ September sales. Certain power, fertiliser and CNG suppliers were in action as price of natural gas for these entire sector have been cut by 18 per cent to $2.5 per million British thermal unit, it’s the fourth reduction in 18 months.
Asian equity markets ended in green on Monday, as European bank worries receded and an official survey showed activity in China’s manufacturing sector expanded slightly in September. Hang Seng and Nikkei closed up by 1.23 per cent and 0.90 per cent. Markets in China, South Korea and Malaysia were closed for public holidays.