Domestic benchmark indices extended gains for the second straight session and ended on a bullish note on Monday, backed by positive global equities, amid heavy buying in banking and financial stocks. Mirroring encouraging cues from global markets, the S&P BSE Sensex ended 364 points or 0.95% higher at 38,799. The Nifty 50 index closed 94 points or 0.83% at 11,446.
Last Friday, Sensex ended 214 points higher at 38,541 and Nifty closed 59 points higher at 11,371. In the last week, Sensex has risen 557 points or 1.47%, while Nifty has gained 193 points or 1.73%.
Kotak Bank, followed by Asian Paints, HDFC duo, Tata Steel, IndusInd Bank, ICICI Bank and SBI were among the top gainers in the Sensex pack. On the other hand, HCL Tech, Tech Mahindra, PowerGrid, Titan, Infosys and TCS were among the laggards.
Sectorally, barring IT, pharma and realty indices, all the other sector-based indices closed bullish, with most gains registered in banking and financial stocks.
Besides, positive global cues, traders were optimistic over the news of more businesses resuming operations after the Indian government on Sunday issued guidelines for restarting its entertainment industry.
Commenting on today's rally, S Ranganathan, Head of Research at LKP Securities said, "Key indices rallied on Monday's trade as financials led the charge ably supported by select pivotal across the BFSI space. The broader market too depicted strength as smart investors were seen buying select small and midcap stocks across sectors which lent considerable steam to the rally today."Share Market Highlights: Sensex ends 364 points higher, Nifty at 11,466; Kotak Bank, HDFC Bank top gainers
On the currency front, rupee extended gains and ended at 74.31 per US dollar, its highest level since March 18. This was against its earlier closing price of 74.84 per dollar on Friday. Government 10-year benchmark bond yield ended at 22 6.22% versus previous close of 6.14%, its highest level since April 22.
On rupee's outlook, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said, "Near term sentiments have turned positive amid upbeat equities and going forward, once 74 levels on the rupee is breached, the currency looks primed to test levels of around 73.50 and can even extend its strength towards 72.80 in coming days."
Domestic markets indices gained further momentum by the afternoon session, on the back of bullish European indices, rising over 2% each on a positive global rally.
Asian equities gained on Monday as investors tracked developments on coronavirus vaccine and after the US Food & Drug Administration authorised the use of blood plasma from recovered patients as a treatment option for COVID-19. US President Donald Trump said that the plasma treatment cuts the mortality rate by 35%.
The US markets closed higher supported by positive economic data. US business activity snapped back to the highest since early 2019 in August as companies in both manufacturing and services sectors saw a resurgence in new orders, data by IHS Markit surveys suggested.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Indian benchmark indices built up on its opening gains, with the support of global cues, and ended the day on a strong note. Following more reopening guidelines by the government, the markets chose to ignore the rising cases of infections. It instead keeps riding the positive momentum brought about by ample liquidity in the markets and expectations of the economy improving"
Nifty50 - the benchmark index traded above the crucial support level of 11350 and later almost touched the 11500 levels as resistance was observed at 11,406 and 11,440 levels.
Commenting on Nifty's technical outlook today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, said, "We should be able to revisit that price point and possibly higher towards 11700. Any dip can be utilised as a buying opportunity. 11300 is now strong support for the Nifty."
On market trend analysis for today, Ajit Mishra, VP - Research, Religare Broking said, "We reiterate our positive view on the index and expect Nifty to test 11,600 soon. With no major event, markets will continue to take cues from the global indices. The recent buoyancy in the banking space is indeed a positive sign however any fresh escalation between India and China at LAC might dent the momentum."Gold price resumes fall amid strong dollar; silver rates at Rs 65,900