Benchmarks advanced amid trade deal optimism
Rally driven by optimism over the India-US trade deal and robust buying in public sector banks, consumer durables, and realty stocks
Benchmarks advanced amid trade deal optimism
Benchmark equity indices Sensex and Nifty extended their gains for the second straight session on Monday, driven by robust buying across all segments after India and the US reached a trade deal, putting an end to tariff uncertainties.
The 30-share BSE Sensex jumped 485.35 points, or 0.58 per cent, to close at 84,065.75. During the day, the benchmark surged 734.28 points, or 0.87 per cent, to hit an intraday high of 84,314.68.
The 50-share NSE Nifty appreciated by 173.60 points, or 0.68 per cent, to settle at 25,867.30. During the session, the index climbed 228.55 points, or 0.88 per cent, to hit a high of 25,922.25.
Among the 30-share constituents, State Bank of India, Titan, UltraTech Cement, Tata Steel, Eternal, Bharat Electronics Ltd, Kotak Mahindra Bank, IndiGo, Trent, Mahindra & Mahindra, Larsen & Toubro, Sun Pharmaceuticals, and Asian Paints were the gainers.
On the other hand, PowerGrid, NTPC, ITC, ICICI Bank, Infosys, HDFC Bank, Tech Mahindra, Maruti Suzuki India and Axis Bank were the laggards.
“Positive signals from the trade deal, coupled with the return of FIIs, fuelled a risk-on sentiment in the market. Investors are closely watching upcoming results, with PSU banks delivering stronger-than-anticipated performance, helping the PSU bank index outperform,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
He added that an accumulation strategy was observed in consumer durables and real estate stocks following the recent correction, driven by expectations of a demand revival.
“The recovery was broad-based, with sectors such as cement, capital goods, textiles, and consumer discretionary attracting investor interest, supported by Union budget proposals and favourable trade deals,” Nair said.
On the BSE, the Smallcap Select index rose 2.31 per cent, while Midcap Select index went up 1.27 per cent. Among sectoral indices, PSU Bank climbed the most by 2.83 per cent, followed by Consumer Durables (2.76 per cent), Realty (2.64 per cent), and Commodities (2.06 per cent).
While Industrials and Telecommunication rose by 1.94 per cent each, Capital Goods increased 1.89 per cent, Consumer Discretionary gained 1.73 per cent, and Metal went up by 1.54 per cent.
