Stock Market Today: Indian stock markets rallied for a third straight day on Monday as prospects of a slowing economic growth fanned hopes that global central banks may go slow on interest rate hikes. The BSE Sensex rose 433 points, or 0.82 per cent, to end at 53,161. The NSE Nifty50, meanwhile, added 132 points, or 0.85 per cent, to close at 15,832. Both the indices hit their respective intra-day highs of 53,509.50 and 15,927.45.
Top Gainers And Losers
Coal India, ONGC, UPL, HCL Tech, L&T, Tech M, Hindalco, BPCL, Asian Paints, Infosys, and IndusInd Bank advanced between 2 per cent and 3 per cent, while Apollo Hospitals, Eicher Motors, HDFC Life, Kotak Bank, RIL, and Titan fell over half a per cent.
Broader Markets
In the broader markets, the Nifty MidCap and SmallCap indices gained 1 per cent and 2 per cent, respectively.
Sectoral Indices
Sectorally, the broad-based rally saw the Nifty Auto index ending with 2-per cent gain, and the Nifty Metal index with 1.6-per cent rally.
Among stocks, Hindustan Copper gained over 2 per cent. The state-owned company will meet on Thursday to consider a proposal to raise up to Rs 500 crore via debentures.
SBI cards rose 3 per cent after the company’s May credit card spends rose by 8 per cent from April.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The jury is still out on whether this is a bear market or a corrective phase in a long-term bull market. After falling into a bear market territory, the Nasdaq and S&P 500 have smartly bounced back and this is getting reflected in other markets too. The 3 per cent bounce back in S&P last Friday indicates that pullbacks can be sharp and the consequent short-covering can surprise on the upside. A significant development last week was the sharp 4.3 per cent cut in the Bloomberg commodity index. If this trend sustains, inflation expectations will come down, enabling central to go a bit slow on tightening, and achieving a soft landing for the US economy. The near-term fall in commodity prices is beneficial for commodity users like autos whose prospects are looking up.”
Global Cues
Stocks gained in Asia on Monday amid improved risk sentiment after Wall Street rebounded strongly at the end of last week as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening. Treasury yields remained subdued and the dollar hovered near the lowest in more than a week as investors continued to assess the outlook for U.S. rate hikes, and the potential for a recession.
Tokyo stocks opened higher on Monday, extending strong rallies on Wall Street, where the weakening economic outlook moderated expectations on central bank monetary tightening. The benchmark Nikkei 225 index was up 1.02 per cent, or 271.10 points, at 26,763.07 in early trade, while the broader Topix index was up 1.00 per cent, or 18.60 points, at 1,885.32.
Wall Street’s main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve’s rate-hike plans. The Dow Jones Industrial Average rose 823.32 points, or 2.68 per cent, to 31,500.68, the S&P 500 gained 116.01 points, or 3.06 per cent, to 3,911.74 and the Nasdaq Composite added 375.43 points, or 3.34 per cent, to 11,607.62.
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