Domestic benchmark indices, Sensex and Nifty gained on the opening bell on Monday morning defying global cues. S&P BSE Sensex was up 275 on opening while Nifty was just shy of the 11,000 mark on opening. However, in the initial hour of trading, share markers added to their opening gains and Nifty crossed the 11,000 mark. “The markets have opened with a bang and have achieved its target of 11,000! We should be headed higher to 11,150 as the next target on the Nifty. 10600 is good support for the index,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Share markets scale back to pre-coronavirus levels: Sensex and Nifty are now at levels that were last seen when the number of coronavirus cases in India was less than 50. Nifty was last seen to be around 11,000 mark on March 6. This was weeks before the first lockdown was initiated in India.
Top gainers: HDFC Bank was leading the pack on Sensex with a 4% jump in stock price after the lender reported a 20% surge in net profit for the coronavirus-hit June quarter. ICICI Bank was following closely behind with a 3.4% gain. HCL Technologies, State Bank of India, and IndusInd Bank were the other top gainers.
Volatility returns: With the equity markets gaining higher, India VIX was also seen inching higher on Monday morning. After opening at 24 points the volatility index gained as much as 3% on Monday morning.
Financials on strong footing: Among the top 6 gainers on BSE Sensex, five were banking and finance stocks. All constituents of the S&P BSE Bankex were in the green except for Kotak Mahindra Bank, which was down 0.28%. HDFC Bank and ICICI Bank were the top gainers. For HDFC Bank, Morgan Stanley has raised their EPS estimates by 5% for this fiscal and 4% for the next fiscal.