The 30-share BSE Sensex jumped 468.38 points or 0.76% to settle at 61,806.19 as 24 of its stocks advanced. File
| Photo Credit: The Hindu
Benchmark BSE Sensex and Nifty closed higher by nearly 1% on Monday, ending their two-session losing streak following heavy buying in banking, oil and FMCG shares.
The 30-share BSE barometer jumped 468.38 points or 0.76% to settle at 61,806.19 as 24 of its stocks advanced. During the day, it advanced 507.11 points or 0.82% to a high of 61,844.92.
The broader NSE Nifty climbed 151.45 points or 0.83% to end at 18,420.45.
The indices had declined by more than 2% in the last two sessions.
“Stabilizing after the previous session, domestic indices edged towards gains owing to optimistic cues from western markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
From the Sensex pack, Mahindra & Mahindra, Power Grid, Bharti Airtel, Bajaj Finserv, HDFC, Hindustan Unilever, Maruti, ITC, Titan, Nestle, Bajaj Finance and Reliance Industries were the major winners.
Tata Consultancy Services, Infosys, Tata Motors and IndusInd Bank were among the laggards.
The IT sector stood out as an exception to the rally, as the growth guidance of the U.S. IT sector signalled downgrades, Vinod Nair said adding that fears of a worldwide recession and mounting local COVID cases weighed heavily on Asian stocks.
“Optimism in European markets and short covering helped local benchmarks stage a smart bounce back even as other Asian market peers languished in negative territory. Despite the recovery, investors are lacking confidence after the recent US Federal Reserve’s indication of more rate hikes in the coming year,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
While markets may stay volatile in the coming sessions, selective buying will continue to be the mantra of investors till the worries of interest rates subside, he said.
In the broader market, the BSE midcap gauge climbed 0.67% and smallcap index climbed 0.29%.
Among sectoral indices, services jumped 1.94%, auto climbed 1.67%, FMCG (1.43%), consumer discretionary (0.94%), energy (0.93%) and metal (0.91%).
IT and teck were the laggards.
Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong ended lower.
Equity exchanges in Europe were trading in the green in mid-session deals. The U.S. markets had ended lower on Friday.
International oil benchmark Brent crude climbed 1.15% to $79.95 per barrel.
Foreign institutional investors (FIIs) offloaded shares worth ₹1,975.44 crore on Friday, according to exchange data.
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