Sensex, Nifty up by 1.8%; RIL, SBI, HDFC Bank rally
NEW DELHI: Led by index heavyweights Reliance Industries Ltd (RIL), SBI, and HDFC Bank, among others, domestic equity market made a stellar comeback on Monday ahead of the interim budget.
The buoyancy in Dalal Street was also supported by favourable global cues, especially a sharp surge in Asian equities and expectations of favourable outcomes from the upcoming Federal Reserve meeting.
Meanwhile, foreign portfolio investors (FPI) turned net buyers on Monday after six sessions of relentless selling. FPIs net bought shares worth `110 crore on Monday.
The BSE Sensex ended the Monday session with gains of 1,240.90 points at 71,941.57. The NSE Nifty50 rose 385 points to settle at 21,737.60. Broader market indices - mid-caps and small-caps - also ended on a positive note. Investors’ wealth climbed Rs 6 lakh crore on Monday.
“Despite premium valuations, confidence is upheld among investors due to the optimistic environment surrounding the interim budget and recent set of results aligning with forecasts,” said Vinod Nair, head of research, Geojit Financial Services.
Nair added that the upcoming Federal Reserves policy stands out as a crucial factor for the global market. While a rate cut by the FOMC is unlikely, investors will eagerly monitor their commentary to get cues on future rate paths.
RIL shares hit an all-time high of Rs 2,905 on Monday and finally settled at Rs 2,890.1, up 6.8%, on the NSE. The m-cap of RIL soared by over Rs1 lakh crore in the single session to top the Rs 19.50 lakh crore mark. Owing to its high weightage in the Sensex and Nifty50, RIL’s contribution to the surge of the two indexes was about 45%.
High demand for shares of Reliance and other energy stocks is attributed to a rise in crude prices amid escalating tensions in the Middle East following a missile attack on a Trafigura-operated fuel tanker in the Red Sea.
Prices of crude oil have jumped to an eight-week high. This is expected to benefit firms such as Reliance and Oil and Natural Gas Corp ONGC. Shares of ONGC rose 9% - the top gainer in the Nifty50 pack. Shares of Hindustan Petroleum, Bharat Petroleum and Indian Oil were also in high demand on Monday. RIL shares have gained 12% in January following positive commentary by analysts on peaking capex and a strong performance by its retail arm. Besides erosion in the valuation of Walt Disney’s India unit ahead of its proposed merger with RIL’s media business is said to be a positive for investors. SBI, HDFC Bank, Tata Motorts shares also jumped.
Market Gains momentum
Foreign portfolio investors turned net buyers on Monday after six sessions of relentless selling
RIL shares hit an all-time high of Rs 2,905 on Monday and finally settled at Rs 2,890.1, up 6.8%, on the NSE
High demand for shares of Reliance and other energy stocks attributed to rise in crude prices
Prices of crude oil have jumped to an eight-week high. This is expected to benefit firms such as Reliance and Oil and Natural Gas Corp
Investors’ wealth climbed Rs 6 lakh crore