Sensex, Nifty climb over 1 pc amid firm global market trends

MUMBAI: Benchmark Sensex and Nifty spurted over 1 percent on Monday following hectic buying in IT, oil and gas, and banking shares bolstered by firm global trends.

Rising for a second straight session, the 30-share BSE Sensex rallied 760.37 points or 1.41 percent to settle at 54,521.15. During the day, it jumped 795.88 points or 1.48 percent to 53,760.78.

The broader NSE Nifty advanced 229.30 points or 1.43 percent to 16,278.50 as 41 of its constituents advanced.

Stock markets opened on a positive note following gains in Asian markets. Key indices extended gains in the afternoon session after buying in IT, banking, tech, and capital goods stocks.

''Gains in frontline blue-chip stocks such as Infosys, Tech Mahindra also helped to lift the markets,'' said Narendra Solanki, Head Fundamental Research -Anand Rathi-Investment Services.

Among Sensex constituents, IndusInd Bank rose the most by 4.36 percent.

IT companies ended their losing run with Infosys rising by 4.16 percent, Tech Mahindra by 3.67 percent, Wipro by 2.77 percent, and TCS by 2.23 percent.

Reliance Industries rose by nearly 1 percent after a spurt in crude oil prices.

Bajaj Finserv spurted by 3.46 percent, Axis Bank by 3.31 percent, Kotak Bank by 3.25 percent, ICICI Bank by 2.78 percent, and SBI by 2.35 percent.

Ultratech Cement, L&T, Tata Steel, HCL Tech, Bharti Airtel, and Bajaj Finance also gained.

On the other hand, Dr. Reddy's fell the most by 1.7 percent while HDFC twins also dropped up to 1.19 percent. M& M dropped by 0.86 percent and Maruti by 0.84 percent.

''Strong US retail sales data scaled down the worries of an aggressive rate hike higher than 75bps providing the much-needed optimism to global equities. The European Central Bank, in its meeting this week, is set to increase its interest rates for the 1st time to contain record-high inflation,'' Vinod Nair, Head of Research at Geojit Financial Services said.

Sentiments were upbeat as a report suggested that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion, analysts said.

S Ranganathan, Head of Research at LKP securities said, ''The 1.5% up move seen today in the benchmark indices reflects the optimism behind the progress of the south-west monsoon as the BFSI & IT index led from the front with good support coming in from the broader market stocks.'' Among sectoral indices, the Nifty IT index snapped its five-day losing streak and jumped the most by 3.17 percent. Nifty Metal rose by 2.49 percent, Banking by 1.95 percent, and Consumer Durables by 1.45 percent.

In the broader market, the BSE midcap gauge jumped 1.49 percent, and smallcap index climbed 1.39 percent.

Among BSE sectoral indices, IT jumped the most by 3.07 percent, followed by teck (2.96 percent), metal (2.72 percent), bank (2.08 percent), basic materials (1.97 percent), and capital goods (1.96 percent).

FMCG was the only laggard.

Market breadth was positive as of the total 3,612 shares traded on BSE, 2,350 scrips advanced while 1,095 stocks declined. ''Markets are largely mirroring their global counterparts, especially the US while domestic factors like macroeconomic data and earnings cause volatile swings in between,'' said Ajit Mishra, VP - Research, Religare Broking Ltd.

Meanwhile, the rupee slid to 80 levels against the US dollar for the first time in intra-day trade as crude oil rebounded by 2.18 percent to USD 103.4 per barrel.

In Asia, markets in Seoul, Shanghai, and Hong Kong ended significantly higher.

Markets in Europe were trading in the green during mid-session deals. The US markets had ended sharply higher on Friday.

The BSE barometer climbed 344.63 points or 0.65 percent to settle at 53,760.78 on Friday and the Nifty advanced 110.55 points or 0.69 percent to 16,049.20.

Foreign institutional investors went into selling mode again as they offloaded shares worth Rs 1,649.36 crore in the capital market on Friday, as per exchange data.