Mumbai: India’s benchmark indices ended up on Monday with Sensex rising more than 300 points and Nifty ending over 90 points.
At close, Sensex ended 300.44 points, or 0.51 per cent, up at 59,141.23, and Nifty closed up 91.40 points, or 0.52 per cent, at 17,622.45.
Mahindra & Mahindra, Bajaj Finance, Hindustan Unilever, State Bank of India, and Nestle were major gainers on the Sensex.
Nifty FMCG ended 1.07 per cent up, BSE Auto up 0.78 per cent and BSE IT O.30 per cent up, respectively.
“Markets managed to gain over half a percent in a volatile trading session, taking a breather after the recent slide. The Nifty index witnessed a swift rebound in the first hour after the initial fall and remained range bound thereafter. Meanwhile, the sectoral trend was mixed wherein banking, FMCG and auto witnessed buying interest while realty, energy, and metal were on the back foot,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
Asian stocks had a mixed day as traders remained cautious awaiting a slew of interest rate decisions in the days ahead and after global equities notched their worst week since hitting this year’s low in June.
Going forward, as per Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, markets are likely to remain range-bound ahead of US Fed interest rate decision to be announced September 21 (Wednesday).
While it is widely expected that Fed will go for at least 75 basis points hike, however given the stubbornness of US inflation and robust numbers from US data points like retail sales and a strong labour market, there is a high chance that the aggressive stance towards rate hike is likely to continue for a prolonged time.
Even the Bank of England is likely to announce a 50bps rate hike to combat inflation and could keep global markets under pressure.
US 2-Year bond have spiked to 15-year high at 3.9 per cent while 10-year bond is hovering at 3.4 per cent, thus implying that the short term pain could continue in the global markets.
“Back home, Indian markets is better placed compare to the other global markets due to its strong macro factors, strong government policy implementation and oil price falling to 7-month. This well reflected in today’s Nifty outperformance to global market as well,” said Khemka.
–IANS
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