Mumbai: The Indian stock market ended the Monday session with a decent rally amid buying interest in metal, IT and construction sectors, despite ongoing concerns around US tariffs.
Sensex closed at 81,018.72, up 418.81 points or 0.52 per cent. The 30-share index started the session with a decent gap-up at 80,765.83 against the last day’s closing of 80,599.91. The index extended the momentum further following buying in IT, Metal and auto stocks and touched an intraday high of 81,093.19.
Nifty ended the session at 24,722.75, up 157.40 points or 0.64 per cent.
Earlier in the morning, the domestic benchmark indices opened on a resilient note despite persistent global weakness.
“Sectoral performance was led by robust gains in Metals, Automobiles, Media, Construction, and IT stocks, underscoring sustained investor interest in growth-oriented sectors. Conversely, Consumer Goods, Energy, and Financial Services stocks faced mild selling pressure,” said Ashika Institutional Equities in its note.
On the global front, disappointing US employment numbers have intensified speculation that the Federal Reserve (Fed) may opt for an interest rate cut at its September meeting. This global macro backdrop has increased investor sensitivity to upcoming policy cues, according to the note.
Tata Steel, Adani Ports, BEL, TCS, Tech Mahindra, Bharati Airtel, HCL Tech, Trent Mahindra and Mahindra, Ultratech Cement, L&T, Titan were among the top gainers from the Sensex stock. Power Grid, HDFC Bank, and ICICI Bank settled in negative territory.
Among the sectoral indices, Nifty IT surged 553 points or 1.6 per cent, Nifty Auto soared 376 points or 1.61 per cent amid buying interest. Nifty Bank and Nifty Financial Services closed flat following a mixed reaction.
The buying momentum escalated into broader markets as well. Nifty 100 surged 180 points or 0.72 per cent, Nifty Midcap 100 soared 795 points or 1.4 per cent, and Nifty Small Cap 100 settled 225 points or 1.27 per cent higher.
According to Ajit Mishra, SVP, Research, Religare Broking Ltd, said that markets started the week on a positive note, gaining over half a per cent amid mixed cues. The broader markets also found some relief after the recent correction, as both the midcap and smallcap indices posted gains of nearly 1.5 per cent.
A recurring pattern observed in recent weeks is that the benchmark tends to trade with a positive bias during the first half of the week, only to witness renewed selling pressure in the latter half. Hence, participants should avoid reading too much into a single-day rebound or pause and instead focus on the sustainability of the move, he added.
(IANS)
