Markets soar for 2nd day


Mumbai: Benchmark equity indices Sensex and Nifty surged as much as 1.6 percent on Monday, lifted by intense buying in financial stocks on hopes of capital support to public sector banks and stimulus measures for the economy.

The BSE Sensex settled 592.97 points or 1.59 percent higher at 37,981.63, while the NSE Nifty surged 177.30 points or 1.60 percent to 11,227.55 — the second straight session of rise for the indices. In the Sensex pack, IndusInd Bank was the top gainer, rising around 8 percent, followed by Bajaj Finance, Axis Bank, PowerGrid, ONGC, Sun Pharma, ICICI Bank and M&M.

On the other hand, Hindustan Unilever, Infosys and Nestle ended in the red. All sectoral indices ended with gains, with BSE power, bankex, auto, realty, utilities, finance and metal rallying up to 3.40 percent. Broader midcap and smallcap indices surged outperformed the benchmark, rising up to 2.68 percent. “Key Indices ended high as bulls led the charge backed by financials and well supported by auto and pharma. Expectations of a stimulus coupled with capital support to state-run banks fuelled the rally in late afternoon trade,” S Ranganathan, Head of Research at LKP Securities, said.

Vinod Nair, Head of Research at Geojit Financial Services, said global cues were also positive following positive industrial profits data from China, setting aside concerns about the increasing virus infections and related impact. Indian markets were also banking on further stimulus and other measures by the government to boost the economy, he said.

According to traders, domestic equities also tracked strong buying sentiment in global equities ahead of the first US presidential debate. Global investors are eyeing the first US presidential debate, set for Tuesday, between US President Donald Trump and Democratic candidate Joe Biden. It could influence the course of US policies and is likely to affect share prices across the world, analysts said. Bourses in Hong Kong, Tokyo and Seoul ended on a positive note, while Shanghai was in the red.

Stock exchanges in Europe were trading with strong gains in early deals. Meanwhile, international oil benchmark Brent crude was trading 0.68 per cent lower at $42.12 per barrel. In the forex market, the rupee settled 18 paise lower at 73.79 against the US dollar.