Sensex Today: Amid positive global cues, domestic equity indices opened higher on Monday, led by banking, financial and IT stocks. The S&P BSE Sensex surged 787 points, or 1.3 per cent, to end at 60,747. The Nifty50, meanwhile, shut shop at 18,011, up 225 points or 1.26 per cent.
In the broader market, the BSE MidCap, and SmallCap indices edged 1.24 per cent, and 0.45 per cent higher, respectively.
Gains were broad-based as all the sectoral indices ended higher. The Financial Services, IT, Pharma, Auto, and Consumer Durable indices gained over 1 per cent each, while others added up to 1 per cent.
Among individual stocks, Ultratech Cement, Sun Pharma, HDFC twins, L&T, M&M, Bajaj twins, Bharti Airtel, Asian Paints, Infosys, Tech M, Kotak Bank, HUL, Titan, and ITC jumped in the range of 1 per cent to 4 per cent. On the downside, NTPC, Dr Reddy’s Labs, IndusInd Bank, and Nestle were the only Sensex losers, down up to 0.7 per cent.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Technically the market is poised to continue the ongoing rally aided by support from the mother market US where the Dow’s 828 points rally last Friday recorded fourth straight week of gains. The driving force behind the ongoing rally is the strength of the US economy which is indicating a lower probability of an immediate US recession and, more importantly, indications that inflation is plateauing and might show a declining trend soon. This might enable the FED to slightly moderate their hawkish stance. Already central banks of Canada and Australia have hiked rates below expectations. If this trend spreads, that will favour continuation of the rally in the short-term.”
The fact that FPIs have turned buyers during the last 2 days is another positive. However, DIIs might sell at higher levels since valuations are high, he added.
Global Markets
Asian stock markets climbed cautiously on Monday amid hopes that the Federal Reserve might sound less aggressive about rate hikes this week, while wheat prices leapt after Russia withdrew from a pact allowing Ukrainian grain to transit the Black Sea.
On Friday, the US markets clocked strong gains amid hopes of slower rate hikes and healthy corporate earnings. All three major indexes in Wall Street – Dow Jones, the S&P 500, and NASDAQ Composite gained over 2 per cent each.
On the commodities front, prices of Brent Crude climbed 0.1 per cent to $95 per barrel and WTI Crude was up 0.2 per cent to $88 per barrel.
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