Mumbai: Indian benchmark indices opened in green zone on Monday, breaking the last week’s trend of edging lower, amid strong buying in the US and China markets.
As of 9.30 am, the Sensex advanced 507 points, or 0.60 per cent, at 84,436 and the Nifty added 165 points, or 0.64 per cent to 26,132.
The broad cap indices performed in line with the benchmarks, with the Nifty Midcap 100 up 0.58 per cent and the Nifty Smallcap 100 adding 0.51 per cent.
Hindalco, Tech Mahindra and TCS were among the major gainers in the Nifty Pack, while losers included Asian Paints, Bajaj Finance, Max Healthcare and Cipla.
All the sectoral indices on NSE were trading in the green with metal, IT and media being the major gainers — up around 1.48, 1.23 and 0.77 per cent, respectively.
Analysts noted that market is likely heading for a year-end rally. The rupee’s sharp reversal and FIIs’ cash market purchases can accelerate this rally, as they lead to short covering, pushing benchmark indices higher. The Goldilocks domestic economic set up and potential earnings growth uptrend can support a market upturn, they added.
The US markets ended mostly in the green zone on the last trading day, as Nasdaq advanced 1.31 per cent, the S&P 500 edged up 0.88 per cent, and the Dow moved up 0.38 per cent.
As investors parsed China’s central bank keeping loan prime rate steady, Asia-Pacific markets rose on Monday.
The People’s Bank of China maintained its 1-year and 5-year loan prime rates steady, which affects most new and outstanding loans and mortgages.
In Asian markets, China’s Shanghai index advanced 0.64 per cent, and Shenzhen dropped 1.36 per cent, Japan’s Nikkei edged up 1.75 per cent, while Hong Kong’s Hang Seng Index added 0.29 per cent. South Korea’s Kospi added 1.72 per cent.
On Friday, foreign institutional investors (FIIs) sold equities worth Rs 2,387 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 5,200 crore.
(IANS)
