Investor wealth climbed by 6 billion rupees on Monday, with the BSE Sensex up nearly 2% on heavy buying in Reliance Industries and gains in Asian markets. The 30-share BSE Sensex rose 1,240.90 points, or 1.76 per cent, to close at 71,941.57 points. On the same day, the index surged 1,309.55 points or 1.85% to 72,010.22 points.
The market capitalization of BSE-listed companies jumped by Rs 6,08,556.11 crore to Rs 3,77,20,679.19 crore ($4.53 trillion). “Strong signals from global markets boosted sentiment in the domestic market, with broad gains in equity markets pushing the benchmark Sensex past the psychological mark of 72,000, led by RIL to a fresh all-time high in the closing stages. Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd It said that following last week’s sharp sell-off triggered by the FII sell-off, further short covering coupled with a recovery in global indices helped reignite optimism in the market.
Among Sensex companies, Reliance Industries was the biggest contributor to the market’s gains, rising nearly 7%. 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 closed higher, while Shanghai closed lower.
“The turnaround in domestic markets, driven by the recent sell-off and positive gains among Asian peers, provides an opportunity to accumulate quality stocks. Despite premium valuations, investors are looking to Confidence remains maintained. “Globally, the upcoming Fed policy is a key factor. While the FOMC is unlikely to cut interest rates, investors will keenly watch their comments for clues on the future path of interest rates,” said Vinod Nair, head of research at Geojit Financial Services.
In the broader market, the BSE midcap index gained 1.68% and the smallcap index gained 1.03%. Among them, the energy index rose 5.29%, oil and gas rose 4.94%, electricity (3.03%), services (2.82%), capital goods (2.13%), industry (2.17%) and consumer durables (1.93%).
FMCG, IT and Tektronix Technologies are the laggards. A total of 2,266 stocks advanced, 1,654 stocks declined and 141 stocks were unchanged.
“Domestic markets have started the week on a positive note with renewed buying in index heavyweights. There are two important events this week scheduled for Thursday – the mid-term budget and the Fed meeting, which may trigger some volatility,” Motilal Oswal Financial Services Ltd Retail said Siddhartha Khemka, head of research.
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