The Sensex and Nifty opened the week on a buoyant note and hit their highest levels in nearly four weeks on the back of gains in financials, while stronger Asian stocks also boosted sentiment. While the Sensex closed 161 points or 0.48% higher at 33, 788, Nifty rose 0.46% or 47 points at 10,379 level.
Traders and investors resorted to profit booking during the last 30 minutes of trade after markets hit their intra day high of 33,846 and 10,397 level, respectively in afternoon trade following positive global cues.
Anand Shah, deputy CEO & head of investments, BNP Paribas Mutual Fund said, "After opening on a dull note, the markets subsequently moved higher, on hopes that an out and out trade war between the United States and China could be averted. In an announcement over the weekend, US officials reportedly noted that any penalties on Beijing are not imminent and there is ample time to avert a possible trade war. President Donald Trump said in a tweet Sunday that he expects China to lower trade barriers with the US acting reciprocally on taxes. Market participants viewed this as a positive step and accordingly increased exposure to equities. Both the benchmark Sensex and the Nifty finally closed the day with gains of over 0.25%. On the sectoral front, while media, healthcare and Information Technology (IT) indices traded in the red, gains were witnessed in FMCG and banking indices."
Analysts also attributed the positive weekly start to the Q4 earnings season which starts with IT major Infosys scheduled to announce its results on Friday.
"Expectation is that earnings could be a shade better this quarter," said Gaurang Shah, head investment strategist, Geojit Financial Services.
Axis Bank (3.44%), M&M (3.44%) and ITC (2.05%) were the top Sensex gainers.
Consumer durables (1.70%), oil and gas (1.52%) , and banking stocks (0.90%) rose the most among sectoral indexes on BSE.
IT stocks were the top losers with TCS and Infosys falling before the start of Q4 earnings season on Friday.
BSE Information Technology index was the top loser falling 0.92%.
Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said, "Despite some strong sell-off in US markets on Friday, our markets opened on a subdued note, owing to early morning recovery in 'Dow Futures'. During the initial hour, a follow up buying across the board extended last week's relief rally by more than half a percent. However, due to continuous profit booking, the index could not precisely test the 10400 mark.
The Nifty remained in a positive territory throughout the day; however, the day clearly belongs to the individual stocks. We did see stock specific moves in both directions, which we believe is likely to continue as index is now approaching the important resistance zone of 10400 - 10450. As a momentum trader, one should strictly adopt a stock centric approach as index enters this territory. On the downside, 10350 - 10322 would be seen as important support levels.
With a broader view, we would reiterate that if we look at the weekly and monthly charts, we still believe that worse is not over yet for our markets. This is just a relief rally and hence, one need to keep booking timely profits and ideally should stay light on positions."
Meanwhile, Lemon Tree Hotels , which made its debut with listing gains of 10% closed 27.86% or 15 points higher at Rs 71.60 level on BSE. The stock made its market debut at Rs 61.60 per share, 10% higher than its issue price of Rs 56 per share.
Market breadth was positive with 1,654 stocks closing higher against 1069 ending in the red on BSE.
Asian stock markets rose Monday amid uncertainty about an escalating US-Chinese tariff dispute after President Donald Trump said a settlement was possible but his advisers said other nations might add to pressure on Beijing.
The Shanghai Composite Index rose 0.3 percent to 3,142.72 and Tokyo's Nikkei 225 added 0.6 percent to 21,696.73. Hong Kong's Hang Seng advanced 1.8 percent to 30,393.21 and Sydney's S&P-ASX 200 gained 0.3 percent to 5,807.90. Seoul's Kospi rose 0.6 percent to 2,442.02 and India's Sensex added 0.5 percent to 33,789.33. Benchmarks in New Zealand, Taiwan and Southeast Asia also advanced.
Stocks fell on jitters about the possible impact of the tariff dispute on US exporters. Caterpillar, a construction equipment maker, slid 3.5 percent and aircraft manufacturer Boeing lost 3.1 percent. The Dow Jones industrial average dropped 2.3 percent to 23,932.76. It is down 10 percent from its record high in late January. The Standard & Poor's 500 lost 2.2 percent to 2,604.47. The Nasdaq composite slid 2.3 percent to 6,915.11.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today