Sensex Surges Over 300 Points, Nifty Above 10,800; Yes Bank Shares Up 3%

The domestic stock markets started the week on Monday on a positive note. The S&P BSE Sensex rose 229.88 points or 0.64 per cent to trade at 35,887.74 in early morning trade. The Nifty50 index surged 65.65 points or 0.61 per cent to trade at 10,838.30. The domestic equity indices opened in the green on widespread buying in metals, auto, IT and banking counters, amid firm Asian cues and a strengthening rupee. At 2:55 pm, Sensex was 305.72 points high and traded at 35,966.15 level. The NSE Nifty, at the same time, traded at 10,858.40 mark.

Asian share markets rallied on Monday as favourable US jobs data whetted risk appetites, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt.

Major gainers in the 30-share Sensex pack were Tata Steel (+1.66 per cent), Yes Bank (+1.48 per cent), Reliance (+1.48 per cent) Vedanta (+1.91 per cent), Sun Pharma (+1.33 per cent) and Mahindra & Mahindra (+1.19 per cent). Top laggards in the Sensex pack were TCS (-1.06 per cent) and (Adani Ports (-0.03% per cent). Hindalco, Vedanta, Tata Steel, Yes Bank and Bajaj Auto were leading the pack of Nifty gainers while main losers on the index in the morning session were TCS, Titan, BPCL, Grasim and Hindustan Unilever.

All sectoral indices, led by bankex, metal, auto, infrastructure, power, capital goods, and healthcare, were in the green, rising up to 1.61 per cent.

"From this week, investors' focus shifts to corporate earnings from trade tensions. Markets opened firm following positive cues from Asian markets, sentiment was also boosted by rupee appreciating against the US dollar due to positive  data on US job market”, said Viral Berawala, CIO, Essel Mutual Fund.

Tata Consultancy Services (TCS) was trading lower by 1.28 per cent at Rs 1,888.80, while Infosys was up 0.62 per cent at Rs 1,292.40. TCS will be the first bluechip firm to come out with its Q1 result on July 10. Other companies like Infosys, IndusInd Bank, Cyient and Indian Overseas Bank are also set to announce their Q1 earning results this week. 

Sentiment in other markets were mostly positive after Friday's US payrolls report showed tame wages and more people looking for work. 

Meanwhile, the Indian rupee appreciated by 30 paise to 68.57 against the US dollar in early trade at the forex market on increased selling of the greenback by exporters and banks. 

According to market analysts, developments on further imposition of trade protectionist measures between the US and China coupled with volatility in crude oil prices and the rupee's movement against the US dollar will affect domestic equity indices throughout this week, reported IANS. The upcoming quarterly results season, along with macro-economic data points on industrial output and inflation, will also determine the trajectory of the key Indian equity indices in this week. 

On Friday, the S&P BSE Sensex closed at 35,657.86 and the NSE's Nifty50 index rose 22.50 points and settled at 10,772.25. Domestic Institutional Investors (DIIs) bought shares worth a net of Rs 1,480.82 crore, while foreign portfolio investors (FPIs) sold equities to the tune of Rs 968.18 crore on Friday. (With Agencies inputs)