Equity benchmarks, the Sensex and the Nifty, closed higher on Monday for a second straight session, thanks to buying in major index companies like Reliance Industries, HDFC Bank, and ICICI Bank. This helped the indices recover from early lows despite a mixed trend in global markets. Investor confidence was further boosted the decline in Brent crude oil prices overseas and simmering tensions in the Middle East.
The 30-share BSE Sensex made a strong recovery after a sharp sell-off in the morning trade, jumping 329.85 points or 0.52% to settle at 64,112.65. Throughout the day, it rallied 401.78 points or 0.62% to reach 64,184.58. The Nifty also saw gains, advancing 93.65 points or 0.49% to 19,140.90.
Among the Sensex firms, UltraTech Cement, Reliance Industries, ICICI Bank, HDFC Bank, Bharti Airtel, IndusInd Bank, State Bank of India, Tata Consultancy Services, Larsen & Toubro, Kotak Mahindra Bank, and State Bank of India were the major gainers. On the other hand, Tata Motors, Maruti, Axis Bank, Mahindra & Mahindra, ITC, NTPC, Tata Steel, and Bajaj Finserv were the major laggards.
In Asian markets, Seoul, Shanghai, and Hong Kong closed in the green, while Tokyo settled in negative territory. European markets were trading with gains, while the US markets ended mostly lower on Friday.
The global oil benchmark Brent crude declined 1.55% to USD 89.18 a barrel. Vinod Nair, Head of Research at Geojit Financial Services, stated, “The domestic market mirrored the upbeat European and Asian markets, as geopolitical risk in West Asia continues. Equities are experiencing a short-term bounce after the heavy selling last week, as crude moderates and Q2 results provide some relief. But a full containment will depend on a radical fall in geopolitical risk and global bond yield.”
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,500.13 crore on Friday, according to exchange data. Foreign Portfolio Investors (FPIs) have pulled out over Rs 20,300 crore from Indian equities this month so far, primarily due to a sharp surge in the US treasury yield and the uncertain environment resulting from the Israel-Hamas conflict.
In the previous session, the BSE benchmark jumped 634.65 points or 1.01% to settle at 63,782.80, while the wider gauge Nifty surged 190 points or 1.01% to 19,047.25.