Mkts skyrocket on value buying

Buying Prospect

• BSE Sensex jumped 1,240.90 pts or 1.76% to 71,941.57
• During the day, Sensex soared 1,309.55 pts or 1.85% to 72,010.22
• NSE Nifty climbed 385 pts or 1.80% to 21,737.60
• Investors accumulating quality stocks
• Optimism surrounding interim budget
• Recent results aligning with forecasts
• FIIs offloaded equities worth Rs2,144.06 cr on Thursday

Mumbai: Benchmark equity indices Sensex and Nifty rebounded sharply on Monday, surging nearly two per cent, buoyed by robust buying in Reliance Industries (RIL) and a rally in Asian markets. The 30-share BSE Sensex jumped 1,240.90 points or 1.76 per cent to settle at 71,941.57 points. During the day, Sensex soared 1,309.55 points or 1.85 per cent to 72,010.22 points. NSE Nifty climbed 385 points or 1.80 per cent to 21,737.60.

“The domestic market underwent an upturn as the recent sell-off and positive Asian peers provided an opportunity to accumulate quality stocks. Despite premium valuations, confidence is upheld among investors due to the optimistic environment surrounding the interim budget and recent set of results aligning with forecasts. Globally, the upcoming Fed policy stands out as a crucial factor. While a rate cut by the FOMC is unlikely, investors will eagerly monitor their commentary to get cues on future rate paths,” said Vinod Nair, Head (Research), Geojit Financial Services. “Firm global cues lifted the domestic market sentiment, as the broad-based rally pushed the benchmark Sensex above the psychological 72,000-mark towards the closing stage led by RIL which scaled a fresh record high. After last week’s major sell-off triggered by FII selling, further short-covering coupled with recovery in global indices aided renewed optimism in the markets today,” said Prashanth Tapse, senior V-P (research) at Mehta Equities Ltd.

In the broader market, the BSE midcap gauge climbed 1.68 per cent and smallcap index rallied 1.03 per cent. Among the indices, energy jumped 5.29 per cent, oil & gas zoomed 4.94 per cent, power (3.03 per cent), services (2.82 per cent), capital goods (2.13 per cent), industrials (2.17 per cent) and consumer durables (1.93 per cent). FMCG, IT and teck were the laggards. A total of 2,266 stocks advanced while 1,654 declined and 141 remained unchanged.

Among the Sensex firms, Reliance Industries jumped nearly 7 per cent, contributing the most to the rally in markets. Tata Motors, Power Grid, Larsen and Toubro, Kotak Mahindra Bank, NTPC, Titan and UltraTech Cement were the other major gainers. ITC, Infosys, JSW Steel, Tech Mahindra and Tata Consultancy Services were the laggards.

In Asian markets, Seoul, Tokyo and Hong Kong settled in the positive territory while Shanghai ended lower. European markets were trading mostly lower. The US markets had ended on a mixed note on Friday. Global oil benchmark Brent crude declined 0.18 per cent to $83.40 a barrel. Markets were closed on Friday on account of Republic Day.

Investors’ wealth swells by Rs 6 trn

Investors’ wealth climbed Rs6 lakh crore on Monday, with BSE Sensex rallying nearly two per cent, driven by heavy buying in Reliance Industries and a rally in Asian markets. The market capitalisation of BSE-listed firms jumped Rs6,08,556.11 crore to Rs3,77,20,679.19 crore ($4.53 trillion).