Sensex Up Over 250 Points; IT, Energy Stocks Lead Gains

Investors bet consumer inflation data for June due later in the day would lead to further monetary policy easing by the Reserve Bank of India.

Sensex Up Over 250 Points; IT, Energy Stocks Lead Gains

Gains in IT, energy and consumer goods shares pushed the markets higher

Domestic stock markets pared early gains after rising more than 1 per cent on Monday, amid strong buying interest in IT, energy and consumer goods shares. The Sensex index rose to as high as 37,024.20 during the session, up 429.87 points from its previous close, after a gap-up opening at 36,880.66 compared to its previous close of 36,594.33.The broader Nifty 50 benchmark climbed up 126 points (1.17 per cent) to touch 10,894.05 at the strongest level recorded during the session. 

At 11:37 am, the Sensex traded 280.96 points - or 0.77 per cent - higher at 36,875.29, while the Nifty was up 78.85 points - or 0.73 per cent - at 10,846.90.

In the Nifty basket of 50 shares, Tech Mahindra, Wipro, Reliance Industries, HCL Tech and Vedanta, trading between 2.40 per cent and 3.78 per cent higher, were the top percentage gainers. 

On the other hand, HDFC Bank, Bajaj Finance, HDFC, Power Grid and State Bank of India - down between 0.89 per cent adn 1.42 per cent - were the worst hit among the 35 Nifty losers.

Reliance Industries shares rose as much as 3.65 per cent to a new record high of Rs 1,947 apiece on the BSE. On Sunday, the conglomerate said US-based Qualcomm Inc's investment arm would buy a 0.15 per cent stake in its digital unit, Jio Platforms, for Rs 730 crore.

Investors bet consumer inflation data for June due later in the day would lead to further monetary policy easing by the Reserve Bank of India.

A poll by news agency Reuters last week showed consumer inflation - or the rate of increase in retail prices - likely eased to 5.3 per cent last month, still just over a point above the central bank's medium-term goal of 4 per cent.

The government said on Friday it was suspending the release of industrial production - or factory output - numbers for May due to inadequate data collection on account of the coronavirus lockdown.

Share markets elsewhere in Asia approached five-month highs on optimism about a recovery in earnings following COVID-19-induced lockdowns.

MSCI's broadest index of Asia-Pacific shares outside Japan was last seen trading 1.17 per cent higher, while Japan's Nikkei 225 benchmark was up 2.22 per cent.

China's Shanghai Composite index was up 1.92 per cent, whereas Hong Kong's Hang Seng and South Korea's KOSPI barometers were up 1.18 per cent and 1.68 per cent respectively.

The E-Mini futures for the S&P 500 were up 0.62 per cent, indicating a positive start for Wall Street on Monday. 

European equity markets started the week on a positive note, with the United Kingdom's FTSE benchmark last seen trading 0.76 per cent higher in early deals. France's CAC and Germany's DAX indices were up 1.01 per cent and 1.15 per cent respectively at the time.