Led by Infosys and SBI, stock markets on Monday rallied smartly and the Sensex crossed the 28,000 mark once again following assurances from global policymakers on the need to boost growth. However, the rupee ended lower by 27 paise to more than 2-week low of 67.35 against the American currency on month-end dollar demand from importers in spite of a sharp rise in the domestic equity market.
The benchmark Sensex closed up by 292.10 points, or 1.05 percent, to 28,095.34 after reaching its highest since August 11, 2015. The broader NSE index rose 1.11 percent to end at 8,635.65, after earlier hitting its highest since July 23, 2015. The index was earlier down 0.28 per cent.
Analysts said policymakers from the Group of 20 countries agreed at the weekend to work to support global growth and better share the benefits of trade, in a meeting dominated by the impact of Britain’s exit from Europe and fears of rising protectionism. The overall sentiment was, however, still cautious given uncertainty surrounding whether the current session of parliament will pass the Goods and Services Tax (GST) bill and as investors awaited other corporate earnings.
Infosys rose as much as 0.73 per cent, on track for recovery after falling as much as 10.6 percent following disappointing April-June results on July 15. SBI gained as much as 2.86 per cent after falling 3.3 per cent in the previous two sessions. Companies expected to post positive results also gained.
Jayant Manglik, president, Religare Securities, said, “extending its consolidation phase, Nifty traded volatility and managed to end with a gain. In the absence of any trigger, it opened almost on the flat note and inched gradually higher, tracking rotational buying in select index majors. However, participants largely preferred to trade in Midcap and Smallcap space, where noticeable activity was witnessed due to earning announcements. We expect Nifty to end the prevailing consolidation with an uptick soon.”
Vinod Nair, head of Research, Geojit BNP Paribas Financial Services, said, “the market gained traction after a subdued start as the strength in European cues helped the market to cross the important hurdle of 8600. Meanwhile, investors expect a favorable discussion on GST during this week and an above normal monsoon will help the market to continue with the momentum despite the near term ambiguity on first quarter results.”