The Indian benchmark indices, Sensex and Nifty, ended higher for the second straight session on Monday on the back of surge in buying in banks, auto and metal stocks along with positive global cues. Extending Friday's rally, the BSE Sensex ended at 38,799.08, up 364.36 points or 0.95 per cent, while NSE Nifty closed 94.85 points or 0.83 per cent higher at 11,466.45. On Friday, the Sensex had ended 214.33 points higher at 38,434.72, while the Nifty50 index had settled at 11,371.60, up 59.40 points.
Among the index heavyweights, IndusInd Bank was the top gainer, followed by Kotak Bank, Bajaj Finance, HDFC Bank, ICICI Bank and Bharti Airtel among others. On the flip side, HCL Tech, Tech Mahindra, PowerGrid, Titan, Infosys and TCS were among top losers. On the sectoral front, all the indices ended in green, barring IT, pharma and realty indices, with banking and financial stocks emerging as top gainers.
"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. Gains were led by banking index and especially by private banks," said Vinod Nair, Head of Research at Geojit Financial Services.
Nair advised investors to remain cautious considering the market run-up and be selective in their investments.
Here's what you need to know before share market opens on August 25.
Q1 earnings announcement
Major corporate earnings announcement have already been out, but companies are allowed to release their June quarter earnings till September 15 in the wake of coronavirus pandemic. Share market will see some stock specific movement as some of the midcap and smallcap stocks are set to declare their June quarter earnings this week. The list includes Indraprastha Gas, Suzlon Energy, Can Fin Homes, IRCON International, Procter & Gamble Hygiene, Phillips Carbon Black, Edelweiss Financial Services, GMR Infrastructure, HCC, Himatsingka Seide, ICRA, IDFC, NMDC, PNC Infratech, Wockhardt among others.
Globally, European and US stocks were trading higher on Monday amid rising hope for a COVID vaccine and treatment. The S&P 500 and the Nasdaq hit record high in early trade after the US FDA approved emergency use of blood plasma in treating COVID-19 patients. Earlier today, all the major Asian markets, including Japan's Nikkei and China's Shanghai Composite, ended higher.
Rising coronavirus cases continue to impact stock market. India's tally crossed the 30-lakh mark to 31,06,349, including 23,38,036 cured or discharged, as per the Union Health Ministry data. In the last 24 hours, 61,408 fresh COVID-19 cases and 57,468 recoveries have been reported, while 836 people succumbed to the disease. With this, total fatalities in India have climbed to 57,542.
Telecom stocks - Vodafone Idea and Airtel - will continue to remain in focus amid ongoing hearing on Adjusted Gross Revenue (AGR) case in the Supreme Court. On Monday, the apex court observed that the government should move to cancel license or spectrum if the AGR dues pending against telcos are being wiped out. Bharti Airtel, Vodafone Idea and others telecom operators had appealed to the Court to allow them to make staggered payments of their AGR dues.
Tracking positive cues from equity market, the Indian rupee closed at a five-month high against the US dollar on Monday. The local currency ended 52 paise higher at 74.32 against the US dollar, against its previous close of 74.85. The rupee rally was also supported by sustained foreign fund inflows coupled by weak US currency.
By Chitranjan Kumar