Sensex jumps 394 points at open, Nifty near 16,600; metal, realty stocks rally
Of 30 Sensex stocks, 28 were in the green at open. HCL Tech, Tata Steel, Bajaj Finance, Tech Mahindra and L&T were the top gainers.
After a sell-off in the previous two trading sessions, equity benchmarks witnessed a gap-up opening on Monday tracking a positive trend in global markets. In early deals, Sensex advanced 394 points or 0.71% to 55,724, while Nifty rose 141 points or 0.86% to 16,592.
“After the initial jitters arising from a probable earlier-than-expected Taper 2.o, the US and European markets stabilised on Friday. Nifty is poised to bounce back smartly in early trade today. But the question is: can the rally sustain when FIIs are selling at higher levels. FIIs sold equity worth Rs 2287 cr last week. A clear trend in the market is the weakness in the broader market, which is likely to continue. Froth is getting removed from the broader market and also from the IPO market as evidenced by the CarTrade stock – subscribed 20 times -closing at a discount to issue price on the listing. This removal of froth is a healthy and desirable trend,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Globally the focus of market attention this week would be the outcome of the Jackson Hole symposium and indications regarding Taper 2.o. Meanwhile, the crash in Brent crude to around $65 augurs well for India’s macros, particularly concerns regarding inflation. This is a shot in the arm for the majority dovish view in the MPC, which has prioritized growth over inflation. The short term trade setting is Advantage bulls, Vijayakumar added.
Gainers & losers
Top gainers and losers on the Sensex.
Sectoral strand
All sectoral indices on the NSE opened in the green. Nifty Metal, up 1.5%, was the top sectoral gainer followed Nifty Realty adding 1.10%. Nifty Auto, Nifty Bank, Nifty IT and Nifty FMCG gained nearly 1% each.
Broader market
The broader markets also opened higher following the gains in benchmark indices. The BSE MidCap index rallied 0.70% to 22,839 level and the BSE SmallCap index was quoting at 25,927 up by 0.92%.
The market breadth was in the favour of bulls as 1,679 shares advanced compared to 604 declined and 90 remained unchanged.
Global markets
Overseas, Asian stocks are trading higher on Monday as traders sought to take advantage of last week’s selloff while weighing risks from the delta virus strain and China’s regulatory curbs.
Major US stock averages rebounded Friday. Technology stocks traded in the green Friday, providing the market with support. Market participants will be awaiting insights into the Fed’s “taper talks” as many central bankers aim to move away from easy policy.