The Benchmark BSE Sensex rose 319 points Monday due to gains in IT stocks and financial stocks following positive quarterly results, supported by global cues.
The 30-share BSE Barometer, which had been sliding for two days, rose 0.53 percent or 319.90 to close at 60.941.67.
The index opened higher, gaining more than 400 points to reach the 61,000 mark. The index reached a high of 61.113.27 and low of 60.761.88 during the day.
NSE Nifty, which is broader, gained 90.90 points (or 0.5 percent) to settle at 18,118.55. 32 of its stocks increased while 18 declined. During the day, the index fluctuated between 18,162.60 to 18,063.45.
Hindustan Unilever was the highest-performing stock on Sensex, rising 1.89 percent. Sun Pharma, Tata Motors and Infosys were the major gainers.
ICICI Bank was flat when it reported a 34.5 percent jump in its consolidated net profits to Rs 8,792 crore for the December 2022 quarter. This was due to a healthy performance overall.
After posting a 31% increase in Q3 net income of Rs 2,792 crore, Kotak Mahindra Bank surged 1.13 percent
UltraTech Cement, however, was the largest loser with a 4.62 percent drop. NTPC and Tata Steel, L&T as well as Reliance Industries, Titan, and Reliance Industries were among the laggards.
Reliance Industries Ltd, owned by billionaire Mukesh Ambani, reported Friday a 15% drop in net profits for the December 2022 quarter. This was due to higher finance costs and the new windfall profit taxes and depreciation that neutralised the company’s strong operating performance.
Market breadth is tilted in favor of bulls, boosted by financial stocks and positive cues coming from global peers. Banks reported strong corporate earnings, which boosted investor interest in financial stocks. Positive global markets due to the possibility of a lower aggressive rate hike, further color,” Vinod Nair (Head of Research at Geojit Financial Services), said.
The broad indices traded mixed. The BSE Midcap rose 0.44 percent to 25,114.15, while the small-cap fell 0.30 percent to 28,544.40.
BSE IT rose 1.65 percent, BSE Teck rose 1.48 percent, Bankex rose 0.76%, FMCG rose 0.73 percent, Auto rose 0.64 percent, Financial Services rose 0.57 percent, and Bankex rose 0.76 percent.
BSE Commodities declined 1.14 percent and realty 0.72 percent, respectively. BSE Power, industrials and utilities, as well as services, also fell.
Positive earnings announcements and positive global cues triggered a gap up, which was further bolstered by renewed buying in the IT majors.
He said that profit taking by energy, banking, and cement heavyweights reduced the gains as the day progressed.
After a Friday rally on the US markets, shares in Europe and Asia rose on Monday.
Tokyo’s Nikkei225 index gained 1.3% despite fears that Japan is in a difficult financial position after it spent heavily to combat the pandemic. Many Asian markets were closed during the Lunar New Year holiday.
Europe: Germany’s DAX edged 0.1% higher, Paris’s CAC 40 gained 0.1%, and Britain’s FTSE 100 gained 0.2%.
Friday’s gains were 1.9 percent for the S&P 500, 1% for the Dow Jones Industrial Average, and 2.7% for the Nasdaq.
Brent crude oil, which is the international benchmark price for trading, fell 17 cents per barrel to USD 87.46.
Due to rising crude prices, the rupee fell 21 points to close at 81.38 (provisional), against the US dollar Monday.
According to exchange data, foreign institutional investors (FIIs), were net sellers on Friday when they sold shares valued at Rs 2,002.25 million.
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