The domestic benchmark indices began the new week on a strong note with the BSE Sensex rallying as much as 194 points to close at 31,882 points, its highest in the last one month period. Nifty rallied by more than 0.7% and closed above the magical 10,000 mark for the first time since August 7. Earlier, the markets opened in the green on Monday morning, after tracking positive cues from Asian markets.
At close, 33 stocks registered advances while 17 stocks had posted declines. Leading the gains in Nifty was IndusInd bank, rallying more than 5.5% after it signed the exclusivity agreement with Bharat Financial Inclusion for a possible merger. Tata Power, GAIL, L&T and Yes bank closed more than 3% higher. Indiabulls Housing Finance, M&M, TCS and Sun Pharma lost more than 0.5% in the day. Maruti Suzuki, Asian Paints and HDFC bank closed 2% higher on Sensex. These stocks were the highest contributors to the rally in the index.
The BSE Midcap rallied by more than 150 points intraday, and closed at 15,865. The BSE Smallcap index closed 127 points higher at 16,451.
Many prominent tickers including Ashok Leyland, Bajaj Finserv, Bata India, Century Textiles, Colgate Palmolive (India), HDFC Bank, Hindustan Unilever, IndusInd Bank, Maruti Suzuki,, Nestle India, Page Industries, TVS Motor and Wipro hit fresh 52-week highs on NSE.
Analyzing the day’s performance, Nikhil Kamath, Co-Founder, Zerodha told FE Online, “Markets again sold off in the latter half of the session indicating further range bound activity. There is significant FII selling which is coming in above the 10 k levels.” Sharing his outlook for the near future, the expert said, “We expect the markets to continue trading in this range between 9,750 to 10,100.”
This recovery bodes well for the markets as the 30-share barometer has lost 204 points over the last week. Most of the regional shares were trading lower on Friday as worries about the damage from Hurricane Irma in the US and fears about ballistic missile launches and nuclear weapons in North Korea continued to weigh. Those fears seemed subdued this morning, as global investors were relieved that that was no fresh action taken by North Korea.