Banking stocks power equity indices' rise; Sensex closes 145 pts higher
India's key equity indices - S&P BSE Sensex and NSE Nifty50 - made gains on Monday on the back of healthy buying in banking stocks, as well as, better-than-expected quarterly results.
Accordingly the indices broke their four-session losing streak and ended marginally in the green.
Initially, the two key indices had a flat opening but witnessed a strong recovery.
On the global front, stocks held their ground after eight consecutive sessions of gains, as traders weighed the prospects of strong corporate earnings in the backdrop of widening inflation risks from multi-year high crude oil prices.
In terms of domestic market, volumes on the NSE were a little higher than the previous day, bank index was the largest gainer while realty, auto, IT, consumer durables, telecom and FMCG lost the most.
Consequently, the 30-scrip Sensex closed at 60,967.05 points, up 145.43 points, or 0.24 per cent.
The Sensex opened at 61,398.75 points from its previous close of 60,821.62 points.
Similarly, the NSE Nifty50 ended the day's trade higher. It rose to 18,125.40, up 10.50 points, or 0.058 per cent.
It opened at 18,229.50 points from its previous close of 18,114.90 points.
"Nifty recovered well from the morning weakness. In the process it made a lower intra day low compared to the previous session but closed higher. It turned up from the low of 17,968 - close to the support level of 17,948," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Selling pressure in some index heavyweights is counterbalanced by buying in some other sectors. However the broader market continues to flounder and the advance decline ratio is deeply in the negative. Nifty has a chance to stabilize and bounce up though a broader market recovery seems a couple of days away."
In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Market opened weak, however strong support from Banking stocks helped to balance the bearish pressure and lifted the indices to trade on a flat note."
"Improved asset quality and business growth based on key Q2 earnings aided the banking sector to improve the outlook leading to outperformance. Global markets were steady in anticipation of robust quarter earnings in the backdrop of inflation fears and possible tightening of monetary policy in the next policies - IANS
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