Sensex jumps 534 points, Nifty ends near 17,700; metal stocks shine

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Indian stocks snapped 4-day losing streak on Monday and settled in the green led by gains in index heavyweights RIL, ICICI Bank, TCS and Infosys. Sensex ended 533.74 points or 0.91% higher at 59,299.32, while Nifty advanced 159.20 points or 0.91% to 17,691.25.

“After a week-long consolidation, the Indian market is back in action despite unfavourable global sentiments. The momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand. The IT sector was under consolidation before the start of quarterly results, which has led to a marginal uptick as major companies are scheduled to announce their results, which can emerge as an opportunity if the results are in line with the robust outlook. RBI Monetary Policy Meeting is another key event that is being keenly watched by the market which is expecting no change instance,” said Vinod Nair, Head of Research at Geojit Financial Services.

Top gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

All sectoral indices on the NSE ended with strong gains. The Nifty Metal index was the star of the day as it gained 2.99% followed by the Nifty Media index surging 2.60%, Nifty Realty rose 2.17% and Nifty PSU Bank advanced 2.10%. Whereas Nifty IT, Nifty Bank, Nifty Auto and Nifty FMCG indices rose in the range of 0.11-0.99%.

Volatility index India VIX cooled off by 2.76% to 16.73 levels

Broader markets

The broader markets continued their outperformance to benchmark indices as the BSE MidCap index rallied 379 points or 1.51% to end at 25,603. While the BSE SmallCap index settled at 28,696 higher by 481 points or 1.71%.

Buyers outnumbered sellers in today’s session. 2,333 shares advanced compared to 1,011 declining and 197 remained unchanged.

Economy

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has called upon the NRIs and Indian diaspora to invest in India unhesitatingly. Addressing the Indian People’s Forum (IPF) Business Conclave in Dubai on 3 October 2021, Goyal said this is the right time for India’s vast expatriate community to invest in their motherland. There is a great opportunity in extraordinary growth in India. Goyal underlined that the 3.4 million strong Indian diaspora in the UAE acts as a bridge between the two countries.

Global markets

The US Dow Jones futures were down 154 points, indicating a weak opening for US stocks today.

European shares fell across the board while Asian stocks were mixed on Monday. Sentiment was dented by concerns surrounding inflation, Federal Reserve tapering and rising interest rates.

Trading in the Hong Kong-listed shares of China Evergrande was halted on Monday as investors continue to monitor the situation surrounding the indebted developer as it faces a maturing bond with little wiggle room for payment. The property giant has missed two bond interest payments in the past weeks.

Investors will look out for the comments from OPEC+ which meets virtually amid a spiral higher in crude prices.