After touching lifetime highs, market indices closed higer on Monday amid largely positive cues from global markets and sustained foreign fund inflows. Ending a volatile trading session, Sensex closed 194 points higher at 44,077 and Nifty gained by 67 points to 12,926.
During today's session, Sensex hit a lifetime high of 44,217 and Nifty touched record high of 12,962. Last Friday, Sensex ended 282 points higher at 43,8a82 and Nifty rose by 87 points to end at 12,859.
IndusInd Bank, followed by Bajaj Finserv, Bajaj Finance, Reliance Industries, ONGC, NTPC and Tata Steel were among the top gainers in the Sensex pack. On the other hand, HDFC, Asian Paints, ITC and Bharti Airtel were among the laggards.
Financials stocks, including banks, non-banking finance companies (NBFCs), and microfinance institutions (MFIs) were trading near multi-year highs on Monday as the Reserve Bank of India's (RBI's) internal working group recommended guarded entry of corporates into banking space, and a proposal to once again allow promoters of banks to hold up to 26% stake or non-promoter investors to take up to 15% stake. As per IWG's recommendations, non-bank lenders with asset sizes of more than Rs 50,000 crore should be allowed to convert into banks, provided they have completed 10 years of operation.
Among sectors, only banking and financials closed in red today, amid profit booking. IT sector ended 2.8% higher, followed by an almost 2% rise in pharma and more than 1% gain in the metal index.
S Ranganathan, Head of Research at LKP Securities said: "Indices closed 0.5% higher today amidst high volatility with a lot of activity seen in NBFC names & Small Finance Banks. Technology heavyweights along with Metals & Oil & Gas majors too lent good support to the Bulls."
Global equities were mostly buoyed today amid hopes of a COVID-19 vaccine, while investors continued to watch for coronavirus developments.
Most Asian stocks rose in Monday trade while markets in Japan were closed for a holiday. Meanwhile, Singapore's economy contracted 5.8% in Q3.
European markets opened higher as investors ignored coronavirus cases and look for cues from the US Treasury decision to give more relief programs.
Wall Street stocks fell on Friday on the expectation of more restrictions due to rising covid-19 cases which could threaten business activity. Fresh worries of central-bank funding for key emergency programs also cast doubts on a swift economic recovery.
On markets closing, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "The Nifty moved from a nervous situation this morning to green pastures by the afternoon. However, it is shying away from hitting the 13000 marks. It is facing some resistance around the 12950-12970 levels but based on charts we should be able to achieve the levels of 13100-13200. Since we have good support at 12700, every dip can be utilized to accumulate long positions."
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities said, Today, the Nifty rejected to sustain below the lowest level of the previous day 12745 and the support level of 10 days SMA, which is an indication of the firm grip of bulls. However, world cues are deteriorating that would impact at least in the short term trend of the market. In the coming week, it is mandatory for the market to cross the level of 12970, in case Nifty fails to break 12970 then it would result in a short term weakness. Below 12730 levels, Nifty could fall to 12630 or 12530 levels. On the upside, above the level of 12970 Nifty could rally to 13100 or 13200 levels. Be stock specific for the time being. For the coming week, Nifty FMCG and Nifty Pharmaceuticals sectors should be on the watch list."
"As the rise in Covid cases are reported in only a few cities in India mainly due to the Diwali festival, so markets have not reacted negatively to this news. We believe no major lockdown is on the cards, as the overall Covid situation is under control. Going forward, the market will react depending upon Covid's situation and the global economic recovery," said Keshav Lahoti, Associate Equity Analyst, Angel Broking.
On the currency front, Indian rupee settled 5 paise higher at 74.11 per US dollar, tracking positive domestic equities and weak American currency.