Sensex Today: Markets rallied for a fourth straight day on Monday as hefty buying in auto, metals, financials, and Reliance Industries lifted sentiment. The S&P BSE Sensex jumped 545 points, or 0.95 per cent, to end at 58,116, while the Nifty50 reclaimed the 17,300-mark to close at 17,340, up 182 points or 1 per cent.
M&M (up 6 per cent) was the top Sensex gainer, followed by RIL, Maruti Suzuki, Bharti Airtel, Power Grid, Kotak Bank, Ultratech Cement, ITC, NTPC, SBI, Axis Bank, and Titan. On the downside, Sun Pharma, HUL, Nestle, TCS, HDFC, and Asian Paints were the laggards, down up to 2.5 per cent.
In the broader market, the BSE MidCap and SmallCap indices added 1.5 per cent each. Sectorally, the Nifty Auto index soared 3.3 per cent, and the Nifty PSB and Metal indices 1.5 per cent each. The Nifty Pharma index was the only loser, down 0.08 per cent.
Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The 9 per cent rally in Nifty in July is in sync with the 9 per cent rally in S&P 500. The pullback in the US and other developed markets was facilitated by the strong employment numbers and resilience of the US economy, triggering hopes that the US might succeed in avoiding a recession, or if the recession happens, that would be a mild one. The big positive for the Indian market is the FPIs turning buyers in July after 9 months of relentless selling. The sharp decline in the dollar index from above 109 to below 106 now indicates that the flight to the safety of the dollar is over for now.”
“At 17,150 Nifty valuations are again moving to the higher side. So at higher levels investors have to exercise caution. After the expected run up in financials, now, capital goods, autos particularly PV and CV segments and select pharmaceuticals look interesting. High-quality financials will continue to be resilient,” he added.
Global Cues
Asian share markets got off to a slow start on Monday as disappointing Chinese economic data fed doubts last week’s rally on Wall Street could be sustained in the face of determined policy tightening by global central banks
Tokyo stocks edged up in early trade on Monday, extending rallies on Wall Street as traders eyed upcoming corporate earnings. The benchmark Nikkei 225 index gained 0.05 per cent, or 14.52 points, to 27,816.16 at the open, while the broader Topix index added 0.14 per cent, or 2.63 points, to 1,942.94.
US stocks racked up more gains Friday as Wall Street closed out its best month since November 2020, a welcome breather for investors after a punishing year for the market.
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