Guwahati: The S&P BSE Sensex increased by 786 points to 60,746.86 on Monday and the NSE’s Nifty50 increased by 224 points to close at 18,011.35.
The third consecutive week saw the Indian market indices continue to rise, rising over the previous 11 sessions in 10 of them.
In anticipation of a more gradual increase in interest rates, robust corporate profits here in India, and the apparent return of foreign capital throughout the previous week, the indexes increased on Monday, mirroring gains from Friday’s US markets. Stock-specific movements in the auto, bank, metal, and IT sectors supported the market advance.
JSW Energy, Cummins Ind, Astral, Mindtree, and Torrent Pharma were the most active companies in the S&P BSE MidCap index, which saw a gain of nearly 312 points. The most active stocks on the BSE LargeCap index, Nykaa, Eicher Motors, Adani Transmission, and Grasim, saw a gain of nearly 90 points, while the most active stocks on the BSE SmallCap index, Orient Cement and Eid Parry, saw a gain of 122 points.
The most active companies on the index were Ultra Cement, Eicher Motors, Mahindra & Mahindra, and HDFC, while Dr Reddy’s, NTPC, and IndusInd Bank were trading lower.
In the coming session, the markets will take cues from the US Federal Reserve’s and the Bank of England’s interest rate announcements. On Monday, markets opened in the green. These choices will impact both the Indian markets and the movement of the world markets.
Investors in domestic markets are monitoring the Reserve Bank of India’s extra meeting, which will take place on Thursday.
At 9.35 am, the Sensex was up 581.64 points or 0.97 percent, trading at 60,541.49 points, while the Nifty was up 173.40 points or 0.97 percent, at 17,960.20 points. This morning, all of the Nifty sectors indices were up, with Nifty IT and Nifty pharma increasing the most.
Coming to specific stocks, Tech Mahindra, Maruti Suzuki India, Dr Reddy’s, Eicher Motors, and Divi’s Laboratories were the top five gainers among the Nifty 50 companies, National Stock Exchange data showed in the morning.
“However, traders may be concerned as data released by the Reserve Bank of India showed India’s foreign exchange (forex) reserves declined USD 3.8 billion to USD524.5 billion for the week ending October 21. Reserves are at their lowest levels since July 2020,” said Mohit Nigam Fund manager and Head – of PMS, Hem Securities.
“The driving force behind the ongoing rally (in Indian stocks) is the strength of the US economy which is indicating a lower probability of an immediate US recession and, more importantly, indications that inflation is plateauing and might show a declining trend soon,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The fact that FPIs have turned buyers during the last two days is another positive. However, DIIs might sell at higher levels since valuations are high,” Vijayakumar added.
Meanwhile, the rupee strengthened marginally from yesterday’s finish to begin trading at 82.37 against the US dollar this morning. It ended the day on Friday at 82.47.