Index majors help Sensex soar 832 pts to top 60,000 mark
MUMBAI: Reclaiming the 60,000 level, equity benchmark Sensex rallied 832 points on Monday, led by gains in index majors Infosys, HDFC twins and TCS amid a largely positive trend in global markets.
The 30-share BSE index ended 831.53 points or 1.40% higher at 60,138.46. Similarly, the NSE Nifty rose 258 points or 1.46% to 17,929.65.
IndusInd Bank was the top gainer in the Sensex pack, soaring over 7%, followed by Bharti Airtel, HCL Tech, Tata Steel, Tech Mahindra and Dr Reddy’s.
On the other hand, M&M, Bajaj Finserv, Nestle India and Reliance Industries were the laggards.
“Indian markets opened on a positive note following largely positive Asian markets as investors react to mixed China factory activity data for October,” said Narendra Solanki, HeadEquity Research (Fundamental), Anand Rathi.
Sentiments were upbeat as a monthly survey said India’s manufacturing sector activities gained further strength in October as companies scaled up production and stepped up input purchasing in anticipation of further improvements in demand, he noted.
Further, GST data released earlier in the day showed the second highest ever GST collection of ₹1.3 lakh crore, a growth of 24% YoY, which further boosted the sentiments, he said.
“Domestic indices bounced back on a positive footing from the recent sell-off, due to strong momentum in global markets, favourable domestic economic data and good Q2 results announcement. “India’s manufacturing PMI increased to 55.9 in October from 53.7 in September as output and new orders improved amid easing Covid restrictions. The sustenance of the trend will depend on the views provided by Fed regarding the current easy money policy to be announced on Wednesday,” said Vinod Nair, Head of Research at Geojit Financial Services.
On the macroeconomic front, GST collections surged to ₹1.30 lakh crore in October, the second highest since its implementation in July 2017, indicating economic recovery from the Covid-19 pandemic and impact of festive demand. However, supply constraints in the automotive sector kept the street cautious, said S Ranganathan, Head of Research at LKP Securities.
All sectoral indices ended with gains. BSE realty, telecom, metal, teck, IT and basic materials rallied as much as 3.56%.
In the broader markets, the BSE midcap and smallcap indices spurted up to 1.79%.