Mumbai: Equity benchmark Sensex snapped two-day losing streak to close 126 points higher on Monday, propped up by buying in index heavyweights Reliance Industries, Maruti and SBI amid a higher opening in European equities.
However, investors remained cautious amid stress in the US and European financial systems, traders said.
The 30-share BSE Sensex climbed 126.76 points or 0.22 per cent to finish at 57,653.86. During the day, the index witnessed a high of 58,019.55 and a low of 57,415.02.
The broader NSE Nifty advanced 40.65 points or 0.24 per cent to end at 16,985.70, with 27 of its scrips ending in the green.
Reliance Industries emerged as the biggest gainer in the Sense pack, rising 1.54 per cent, followed by Maruti, Sun Pharma, State Bank of India, UltraTech Cement, Infosys, Kotak Mahindra Bank, Hindustan Unilever, ITC and HDFC Bank.
On the other hand, Power Grid, Axis Bank, Mahindra & Mahindra and Tata Motors were among the major laggards.
A strengthening rupee bolstered sentiment, even as relentless foreign capital outflows restricted the gains, according to traders.
“…The market ended mixed with marginal gains in large caps while mid and small caps had losses. Some certainty was seen in domestic banks and large caps due to ease in the US and European markets aided by reports on the acquisition of SVB by US lender First Citizens Bank.
“However, investors continue to remain cautious as stress in the US and European financial systems makes their central banks’ actions complex,” said Vinod Nair, Head of Research at Geojit Financial Services.
In the broader market, the BSE smallcap gauge ended 1.50 per cent lower while the midcap index dipped 0.37 per cent.
Among sectoral indices, healthcare, FMCG, bankex, metal and teck were the gainers.
However, power, utilities, industrials, auto, realty and services were the major laggards. The utility index fell by 2.48 per cent and power declined by 2.13 per cent.
“Nifty opened positive and remained steady for most of the session as SVB’s resolution provided some relief to the market. Investors took comfort from the news that First Citizens BancShares will acquire SVB’s deposits and loans. However selling in the last half an hour led to the flat closing of the market at 16,986 (+0.2 per cent),” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
In Asian markets, Seoul, Shanghai and Hong Kong ended in the red while Japan settled in the green.
European markets were trading in positive territory during the afternoon trade. The US markets ended higher on Friday.
“Most Asian stocks struggled Monday amid renewed concerns over more defaults in US and European banks, with Chinese markets falling the most as weak results pulled oil and gas shares lower.
“European shares were higher after First Citizens BancShares soothed fragile markets on Monday by saying that it would take the deposits and loans of failed Silicon Valley Bank,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
The 30-share BSE benchmark declined 398.18 points or 0.69 per cent to finish at 57,527.10 points on Friday. The Nifty fell 131.85 points or 0.77 per cent to end at 16,945.05 points.
Meanwhile, the rupee appreciated by 3 paise to close at 82.37 against the US dollar on Monday.
Global oil benchmark Brent crude climbed 0.39 per cent to USD 75.28 per barrel.
Foreign Portfolio Investors (FPIs) offloaded equities worth Rs 1,720.44 crore on Friday, according to exchange data.
Going ahead, concerns remain about the global banking crisis, which would keep the markets on edge. This week investors would watch out for the US and UK GDP data, which could provide some cues on the Fed’s future course of action regarding rate pause, Khemka said.
PTI
