Stock markets rally amid sharp gains in global shares; Sensex snaps 5-day losing run
Snapping its five-day losing streak following buying in banking stocks and a sharp rally in global shares, the benchmark BSE Sensex rebounded by 341 points on Monday.
As 19 of its constituents ended in the green and 11 in the red, the 30-share BSE Sensex registered an increase of 341.04 points or 0.46 per cent to settle at 74,169.95.
The benchmark, during intra-day trade, climbed 547.44 points or 0.74 per cent to 74,376.35 while the NSE Nifty rose by 111.55 points or 0.50 per cent to 22,508.75.
While Bajaj Finserv, Mahindra & Mahindra, Axis Bank, Bajaj Finance, Adani Ports, ICICI Bank, Zomato and UltraTech Cement were among the biggest gainers from the Sensex pack, the main losers included ITC, Nestle, State Bank of India, Reliance Industries, Asian Paints and Tata Consultancy Services.
Interestingly, the shares of IndusInd Bank rose 5.30 per cent in intra-day trade after the Reserve Bank of India on Saturday assured customers that the firm remains’ 'well-capitalised’, even as it directed the bank’s board to complete remedial action relating to an estimated Rs 2,100 crore accounting discrepancy within this month. The stock finally ended at Rs 676.95, up 0.72 per cent.
Ajit Mishra, Senior Vice-President, Research, Religare Broking Ltd, said markets started the week on a positive note, gaining half a per cent as the consolidation phase continued. “Strong global cues, along with buying interest in select heavyweights, particularly from the banking and financial sectors, led to a firm start, followed by a range-bound session,” he added.
While the BSE midcap gauge climbed 0.77 per cent, the small cap index dipped 0.02 per cent. Among BSE sectoral indices, healthcare soared 1.12 per cent, commodities (0.92 per cent), metal (0.91 per cent), financial services (0.83 per cent), auto (0.80 per cent) and bankex (0.71 per cent) while telecommunication, realty and FMCG were the losers.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said with a lot of uncertainty surrounding the impact of US tariff policies on key economies, including India, investors would be watchful of the global events before taking any call.
Vinod Nair, Head of Research, Geojit Financial Services, said the market experienced a positive trading session, driven by strong performance in the healthcare and financial sectors. “However, lower participation from domestic investors due to tariff-related uncertainties may cause the market to fluctuate within a range in the near term,” he hoped.
Predicting that a decisive momentum will depend on signs of earnings growth, while improving domestic economic indicators suggest a potential recovery, Nair said the investors are closely monitoring the upcoming FED and BOJ meetings, with expectations leaning towards maintaining the current stance due to inflation risks associated with tariff uncertainties.
Meanwhile, the global oil benchmark Brent crude climbed 1.06 per cent to USD 71.33 a barrel.
On Thursday, the Sensex declined by 200.85 points or 0.27 per cent to settle at 73,828.91 while the Nifty fell 73.30 points or 0.33 per cent to settle at 22,397.20.
