Benchmark equity indices closed at new record highs for the second straight session on Monday with Nifty50 and Sensex crossing the 22,000 and 73,000 mark for the first time ever, led by IT stocks after better-than-expected results from HCLTech and Wipro.
The BSE Sensex advanced 759 points or 1.05% to settle at 73,328, while NSE Nifty surged 202 points or 0.93% to end at 22,097.
Bluechip stocks Wipro and HCL Tech were the top Sensex gainers as both the companies reported better-than-expected results. HDFC Bank, Infosys, Tech Mahindra, and Bharti Airtel also closed with gains, while Bajaj Finance, Bajaj Finserv, L&T, Tata Motors, and Tata Steel settled with cuts.
Among individual stocks, Zomato closed over 4% lower amid a block deal which saw equity worth Rs 621.68 crore change hands at a price of Rs 138.15 per share.
Shares of BHEL ended 2.5% lower after the firm received an order worth Rs 15,000 crore from NLC in Odisha.
Sector-wise, Nifty Bank, auto, financial services, FMCG, pharma, realty, healthcare, and oil & gas closed higher, while Nifty Media and Nifty Metal ended lower. In the broader market, Nifty Smallcap 100 rose 0.4%, while Nifty Midcap surged 0.68%.
The market capitalisation of all listed companies on BSE increased by Rs 2.8 lakh crore to Rs 376.09 lakh crore. The market breadth was skewed in favour of the bulls. About 2,097 stocks gained, 1,851 declined, and 112 remained unchanged on the BSE.
Expert Take
“The market gained momentum, led by the uptick in the IT index with the growing optimism about increased discretionary spending and strong deal wins. The US bond yield edged lower as market participants bet on the FED easing cycle, which is expected to start in March. Investors are likely to take a more measured approach due to the release of Chinese GDP and UK inflation data this week,” said Vinod Nair, head of research at Geojit Financial Services.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, “The major support for the index is situated at the 21,800 level, and a breach below this would be essential to negate the prevailing trend. The next immediate upside targets for the index are positioned at 22,200/22,300 levels. Sustaining above these levels could potentially lead the index towards the 22,500 mark.”
Global Markets
Global stocks held steady on Monday, with US markets closed for a holiday, while Chinese equities fell slightly after the country’s central bank wrong-footed investors by skipping on a rate cut.
Japanese stocks continued to shine, with the Nikkei 225 index rose 1%, hitting a new 34-year high above 36,000. Meanwhile, China’s CSI 300 index fell to its lowest since 2019 but recovered to stand 0.1% lower as investors digested the central bank’s decision to leave its medium-term policy rate unchanged on Monday, defying expectations for a cut.
Oil Prices Decline
Oil prices declined on Monday as traders watched out for supply disruption risk in the Middle East following strikes by the US and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.
Brent crude futures were down 65 cents, or 0.51%, to $77.78 a barrel after settling 1.1% higher on Friday. US West Texas Intermediate crude was at $72.28 a barrel, down 51 cents, or 0.70%, following a near 1% gain in the previous session.
Rupee Gains
The Indian rupee ended higher on Monday for a ninth straight session, fuelled by speculative bets that its recent winning streak will continue. The rupee settled at 82.8800 against the US dollar compared with its previous close of 82.9225.
Retail inflation within tolerance band
India’s retail inflation surged to a four-month high of 5.69% in December on an annual basis as against 5.55% in November. However, the number has remained within the Reserve Bank of India’s (RBI) tolerance band of 2-6%.
On a sequential basis, the inflation rate witnessed a contraction of (-)0.32%, according to the data released.
(With inputs from agencies)
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