Sensex jumps 280 points at open, Nifty tops 15,750; realty, banking stocks rally

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Benchmark domestic equity indices opened with half a per cent gain as Asian peers start the week higher after US equities chalked fresh records Friday in a broad-based rebound. In early deals, Sensex advanced 280 points or 0.53% to 52,665, while the Nifty 50 added 80 points or 0.52% at 15,770.

Top gainers and losers

As many as 26 of 30 Sensex stocks opened with gains. ICICI Bank, UltraTech Cement, Maruti, SBI, up over 1% each were among the top gainers on 30-share index. On the other side, Bajaj Finserv, HDFC Bank, HUL and Tech Mahindra were the among the laggards.

Sectoral strands

All sectoral indices were trading in the green. Nifty Realty was the top gainer followed by Nifty Bank, Nifty Auto, Nifty Metal, Nifty Pharma and Nifty IT.

Broader markets

In the broader market, the BSE Midcap index rose 0.63% and the BSE SmallCap index climbed 0.93%. Even the market breadth remained strong as 1,486 shares advanced, while 329 declined and 486 remained unchanged.

Earnings today

HFCL, HMT, Steel Strips Wheels, Amit Securities, Dr Lalchandani Labs and others will announce their quarterly earnings on July 12.

Global markets

Overseas, Asian stocks rose on Monday after their U.S. peers chalked fresh records Friday in a broad-based rebound.

In economic news, China’s central bank announced Friday a 50 basis points cut in its reserve requirement ratio for all banks, effective from July. The RRR represents the amount of money that banks must hold in their coffers as a proportion of their total deposits. A lowering of that required amount will increase the supply of money that banks can lend to businesses and individuals.

The three major US stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded after a selloff sparked by growth worries earlier in the week.

Meanwhile, the G20 Finance Ministers on July 10 approved a global corporate tax of at least 15% to be imposed on multinational companies (MNCs) with an aim to end tax-havens. In a two-day virtual meet headquartered from Venice (Italy), the Group also endorsed a broad agreement plan introducing new rules for taxation of cross-border businesses, as per reports. Details and negotiations of the rules are likely to be finalised during the next G20 meet scheduled in October 2021.

Investors continued to watch the coronavirus situation in Asia-Pacific on Monday. Japan’s government is set to put Tokyo under a new Covid state of emergency on Monday while stricter social distancing restrictions are set to kick in for the greater Seoul area in South Korea, as per reports. Elsewhere in Southeast Asia, several countries including Indonesia and Malaysia continue to struggle with a recent surge in infections, reports added.