Markets rally after three-day decline on firm global equities; Sensex rises 846.94 points

PTI

Mumbai, January 9

Equity benchmarks ended over 1 per cent higher on Monday amid positive trends in global markets and buying in Reliance Industries and IT counters.

The 30-share BSE Sensex zoomed 846.94 points or 1.41 per cent to settle at 60,747.31. During the day, it jumped 989.04 points or 1.65 per cent to 60,889.41.

The broader NSE Nifty climbed 241.75 points or 1.35 per cent to end at 18,101.20.

"Nifty broke a three-day losing streak aided by positive global cues. IT stocks did well following gains on the Nasdaq and ahead of TCS quarterly numbers in the evening," said Deepak Jasani, Head of Retail Research, HDFC Securities.

From the Sensex pack, Mahindra & Mahindra, HCL Technologies, IndusInd Bank, Tata Consultancy Services, Bharti Airtel, Tech Mahindra, Wipro, Infosys, Reliance Industries and Axis Bank were the major winners.

IT counters were in heavy demand ahead of earnings from TCS later in the day.

Titan, Bajaj Finserv and Maruti were the only laggards.

Elsewhere in Asia, equity markets in Seoul, Shanghai and Hong Kong ended in the green.

Equity exchanges in Europe were trading higher in mid-session deals. Markets in the US had ended sharply higher on Friday.

"Wall Street climbed in anticipation of a less aggressive US Fed as wage growth slowed and service activity contracted, fuelling bets that inflation is moderating. Furthermore, the December payrolls rising higher than anticipated increased the possibility of a softer landing for the US economy.

"These gains were also absorbed by the domestic market, with IT being the biggest gainer ahead of the release of sector earnings, as the favourable US economy boosted sector optimism," said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE midcap gauge jumped 0.93 per cent and smallcap index climbed 0.50 per cent.

Teck jumped 2.61 per cent, IT climbed 2.54 per cent, power (1.79 per cent), metal (1.51 per cent), energy (1.38 per cent), capital goods (1.28 per cent), auto (1.16 per cent) and industrials (1.13 per cent).

Consumer Durables index was the only laggard.

"Positive undercurrent in global markets had a rub-off effect on local equities, as investors resorted to short-covering after last week's correction helping key benchmark indices recapture their psychological levels. With China steadily lifting Covid restrictions, there are hopes that demand may pick up going ahead, which could give breathing space for the markets already battling recession fears, higher interest rate regime, and benign inflation levels. Despite the recovery, markets may remain choppy as most of the lingering worries are yet to subside," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

International oil benchmark Brent crude jumped 2.67 per cent to USD 80.67 per barrel.

Foreign Institutional Investors (FIIs) offloaded shares worth Rs 2,902.46 crore on Friday, according to exchange data.  

Join Whatsapp Channel of The Tribune for latest updates.

#Airtel #Mumbai #Sensex