Sensex, Nifty surge 2% on gains in IT, oil stocks
The Sensex rallies 1,041.08 points to settle at a four-week high of 55,925.74
MUMBAI: Benchmark stock indices the Sensex and the Nifty surged by nearly 2% on Monday, extending their winning run to a third straight day on gains in index major Reliance Industries Ltd, Infosys Ltd, and Tata Consultancy Services ( TCS) Ltd amid a firm trend in global equities.
The 30-share BSE Sensex rallied 1,041.08 points or 1.90% to settle at a four-week high of 55,925.74. During the day, it soared by 1,197.99 points or 2.18% to touch a high of 56,082.65. As many as 26 Sensex stocks ended in the green. The broader NSE Nifty jumped 308.95 points or 1.89% to settle at nearly four-week high of 16,661.40 with 45 of its constituents ending with gains.
In the three-day rally to Monday, Sensex jumped by 4% or 2,176 points while Nifty soared by 635 points or 3.92%.
Reports of early onset of monsoon in Kerala and gains in global equities following easing inflation concerns and less hawkish tone of the US Federal Reserve in the recently released minutes boosted the investor sentiment.
Among Sensex stocks, Titan rose the most by 4.94%. Mahindra & Mahindra rallied 4.69%, Infosys by 4.57%, L&T by 3.77% and Rech Mahindra by 3.5%.
Index heavyweight RIL soared by 3.44%, and TCS by 3.47%. HCL Technologies, UltraTech Cement, Wipro, and
Bharti Airtel were also among leading gainers.
In contrast, Kotak Mahindra Bank, Sun Pharma, Dr Reddy’s and ITC were the laggards.
“Markets ended the 3-week long consolidation phase and gained over 2%, tracking firm global cues,” Ajit Mishra, vice president-research, Religare Broking Ltd said. “Markets have regained some strength citing the less hawkish tone of the US Federal Reserve in the recently released meeting minutes. On the domestic front, the early onset of monsoon has further lifted sentiments,” he said.
Vinod Nair, head of research at Geojit Financial Services said that US stocks were boosted on softening inflation worries which will be a crucial factor in deciding the tone of the upcoming Fed policy meeting. Easing of long-running lockdown in China also helped in lifting sentiment across Asian markets.
“A near term trend reversal is visible in the domestic market, supported by valuation comfort and positive trend in the global counterparts,” Nair said.
“Nifty rose for the third consecutive session on May 30 following positive global cues due to China easing Covid curbs and sharp Friday gains on the Wall street. Some local factors helping the mood include early arrival of monsoon in Kerala raising hopes of a favourable impact on agri crops,” said Deepak Jasani, head of retail research, HDFC Securities.
In the broader market, the BSE midcap jumped 2.28% and smallcap gained 2.23%. All BSE sectoral indices ended higher, with consumer durables jumping 4.41%, followed by realty (3.96%), information technology (3.75%), consumer discretionary goods & services (2.85%) and energy (2.72%).