Sensex at BSE and Nifty at NSE ended at a four-month high on Monday as RIL and Financial stocks led the gains amidst firm
Global hues and ease in tensions between India and China on the border.
Sensex rose 1.29 per cent or 467 points to close at 36,487 while Nifty went up 1.47 per cent or 156 points to close at 10,764.
Both Sensex and Nifty closed at their four-month high on Monday and registered increase for the fourth day in succession.
Global markets appeared firm as hopes of faster economic recovery in China raised investors’ confidence. Although this factor weighed among investors in India too, rise in Coronavirus cases kept the gains in check as investors moved cautiously, experts said.
As many as 25 Sensex stocks closed higher with RIL contributing the most to the Sensex’s gains. RIL shares registered a new high of Rs 1858 after the company’s telecom arm Reliance Jio launched JioMeet app for the general public which can support unto 100 participants in a Session. The stock closed 3.57 per cent higher at Rs 1851.40.
Top most lender HDFC Bank rose 2.68 per cent after it posted strong growth in deposits and advances for quarter ending June on Saturday. Bajaj Finance and Kotak Mahindra Bank added 6.04 per cent and 1.08 per cent respectively. Top software exporter Tata Consultancy Services (TCS) rose 2.91 per cent.
BSE Midcap and Smallcap gained 1.27 per cent and 1.30 per cent respectively.
Telecom equipment maker ITI rose 20 per cent to a 52-week high of Rs 134.30 after reports came in that the government has barred State-owned telecom companies from using Chinese equipment for 4G up gradation. Among the top Sensex gainers were M&M up by 7.58 percent, Bajaj Finance, 6.04 per cent and RIL 3.57 per cent. Among the losers were Bajaj Auto down by 1.29 per cent, HDFC 0.90 per cent and Airtel 0.79 per cent.
Experts said the investors would be cautious in view of rising Coronavirus cases and would watch the direction of global markets as well as domestic markets in the coming days. Besides they would look forward to progress in treatment of Coronavirus through drug or vaccine.
On the commodity markets, Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities shared his view on Crude Oil. He said, “International and domestic crude were trading flat to weaker this Monday afternoon trade in Asia as rise in covid-19 cases in the U.S. could see localised lockdowns across the states that have apparently reopened, in turn, reducing demand for the fuel.”
In other news, Reuters reported that Saudi Arabia raised their official selling prices for all types of its crude in August by $1, relative to the Oman/Dubai average. The move reinforces confidence amongst investors that the physical market could be approaching some sort of a balance despite high levels of crude in storage across the world.
