Mumbai: Benchmark indices Sensex and Nifty closed higher for the second straight session Monday, boosted by buying in index heavyweights Reliance Industries, ICICI Bank and M&M stocks amid a positive trend in global markets.
The 30-share BSE Sensex climbed 240.36 points or 0.38 per cent to settle at 62,787.47. During the day, it jumped 396.09 points or 0.63 per cent to 62,943.20.
The NSE Nifty advanced 59.75 points or 0.32 per cent to end at 18,593.85.
“Optimism in global equities aided the local market sentiment. Also, the end to the US debt ceiling uncertainty and expectations of a rate hike pause by the US Fed provided some fodder to the struggling markets,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
From the Sensex pack, Mahindra & Mahindra climbed 3.81 per cent and Axis Bank advanced 2.68 per cent, followed by Tata Motors, Larsen & Toubro, Tata Steel, ICICI Bank, Reliance Industries, Maruti, IndusInd Bank and Sun Pharma.
Asian Paints, Tech Mahindra, Nestle, Hindustan Unilever, Kotak Mahindra Bank and ITC were among the laggards.
In the broader market, the BSE smallcap gauge climbed 0.51 per cent, and the midcap index gained 0.29 per cent.
Among the indices, auto jumped 1.23 per cent, capital goods climbed 1.14 per cent, industrials (1.07 per cent), utilities (0.91 per cent) and services (0.56 per cent).
IT and teck were the laggards.
“Majority of the sectors ended in the green, except FMCG, IT, and PSU Bank. Auto and Private Banks were top gainers among the sectors.
“Nifty is gradually inching higher towards its life highs supported by smart gains index heavyweights. Auto and financials are likely to be in focus ahead of the RBI policy meeting this week and are expected to remain in momentum,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the green.
Equity markets in Europe were trading on a mixed note. The US markets ended significantly higher Friday.
“Global stocks followed Wall Street mostly higher Monday after strong US hiring data suggested a possible recession might be further away, while smaller wage gains stoked hopes inflationary pressures are weakening,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
US President Joe Biden signed legislation Saturday that lifts the nation’s debt ceiling, averting an unprecedented default on the federal government’s debt.
India’s services sector growth eased slightly in May, but registered the second-strongest rate of growth in close to 13 years, on favourable demand conditions and new client wins, a monthly survey said Monday.
The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 62 in April to 61.2 in May. Despite falling from April, the latest reading indicated that output increased at the second-quickest pace since July 2010.
Global oil benchmark Brent crude jumped 1.92 per cent to $77.59 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 658.88 crore Friday, according to exchange data.
“Markets started the week with modest gains, tracking firm global cues. The rebound in the US markets has prompted this uptick but we need stability on the global front for a new high,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said.