Stock mkts up nearly 1% as value-buying spurs rebound
Driven by strong buying in power, banking, and financial stocks amid a mixed trend overseas
Mumbai: Equity benchmark indices Sensex and Nifty rebounded sharply by nearly 1 per cent on Monday, driven by strong buying in power, banking, and financial stocks amid a mixed trend overseas. Besides, a largely stable rupee and global crude oil prices amid US-Iran talks supported investors' sentiment, traders said.
Snapping its three-day decline, the 30-share BSE Sensex jumped 650.39 points, or 0.79 per cent, to close at 83,277.15. The 50-share NSE Nifty advanced 211.65 points, or 0.83 per cent, to settle at 25,682.75. A total of 2,565 stocks declined, while 1,747 advanced, and 184 remain unchanged on the BSE. The market capitalisation of BSE-listed firms increased by Rs 3,11,982.13 crore to Rs 4,68,58,625.33 crore ($5.17 trillion).
"After a range-bound opening, domestic markets edged higher, supported by renewed buying interest in banking and power stocks. The power sector gained on expectations of sustained demand momentum, while improved loan growth and stable asset quality bolstered confidence in banks. "Meanwhile, stability in the rupee and range-bound crude oil prices ahead of US-Iran talks are offering additional support to domestic equities," Vinod Nair, Head of Research, Geojit Investments Limited, said.
PowerGrid emerged as the top gainer in the Sensex pack, rising 4.45 per cent, followed by HDFC Bank, Axis Bank, NTPC, ITC, Asian Paints, Bajaj Finserv, Bharti Airtel, Adani Ports, Tata Steel, Kotak Mahindra Bank, Reliance Industries and State Bank of India. On the other hand, Tech Mahindra, Maruti Suzuki India, Bajaj Finance, Trent, Mahindra & Mahindra, Titan, Infosys, ICICI Bank, and UltraTech Cement were the laggards.
"PSU bank stocks rebounded after two sessions of decline, supported by increased mutual fund allocation to the sector in January, which rose to a three-year high," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
BSE Midcap Select Index rose 0.95 per cent, while Smallcap Select Index slipped 0.16 per cent. Among sectoral indices, Power rose the most by 2.40 per cent, followed by Utilities by 2.15 per cent, PSU Bank by 1.65 per cent, Realty by 1.44 per cent, Bankex by 1.20 per cent, BSE Top 10 Banks by 1.16 per cent, Energy by 1.13 per cent, Capital Goods by 1.05 per cent, and Private Banks Index by 1.04 per cent.
