The BSE Sensex displayed a recovery from its biggest weekly drop since August
Sensex and Nifty moved higher on Monday after last week's rebound on Wall Street. Sentiment in the domestic market stabilised after equities in the other Asian markets found a semblance of calm as S&P futures extended their bounce, though global investors were still fretting about the risks from looming US inflation data after last week's sharp selloff. The BSE benchmark index Sensex closed at 34,300, posting a gain of 294 points, and the NSE Nifty settled 84 points higher at 10,539. With that, the stock markets displayed a recovery from their biggest weekly drop since August. The breadth of the market was strong with BSE midcap and smallcap indices finishing around 1.5 per cent higher.
Here are 10 things to know on movement in Sensex, Nifty on Monday:
(With inputs from Reuters)
- Gains were broad-based, with banks, pharma, metals, energy and auto sectors leading the advances. Among the Nifty50 stocks, Tata Steel, Aurobindo Pharma, Yes Bank, Power Grid, UPL and IndusInd Bank finished the session with gains of 2.5-4 per cent.
- The government is due to post inflation data later in the day, with analysts expecting consumer prices to have risen 5.14 per cent last month from a year ago, compared with 5.21 per cent in December. Sentiment is expected to remain wobbly, analysts said, though sectors seen as "undervalued" are likely to attract demand.
- Lupin, Divi's Laboratories and Piramal Enterprises closed with gains around 2 per cent. "Pharma was one of the oversold and underowned sector," said Gaurang Shah, head investment strategist, Geojit Financial Services, noting that the earnings outlook for the sector is expected to improve. "Attraction is back into pharma stocks," he added.
- However, SBI shares closed 2.58 per cent lower at 288.75. Last Friday, SBI, the country's biggest bank by assets, reported a surprise loss for the third quarter. The bank logged a net loss of Rs 2,416 crore for the quarter ended December 31, as against a profit of Rs 1,820 crore a year earlier.
- Upside was also curbed due to some selling witnessed in IT stocks. HCL Tech ended 2.6 per cent lower. Infosys, TCS and Tech Mahindra finished with losses up to 0.8 per cent.
- Sanjiv Bhasin, executive VP for markets and corporate affairs at IIFL, said the volatility could settle down this week but further correction in Indian markets cannot be ruled out.
- The rupee moved higher to 64.23 against the US dollar as against to Friday's close of 64.40. In recent trade, the rupee was at 64.31 against the greenback.
- Global markets are likely to remain cautious in the run-up to US consumer price data, set to be released on Wednesday, says analysts. (Read more)
- Fears of faster inflation, and thus more aggressive rate rises, after the release of US jobs data had triggered the recent global rout.
- On Wall Street, the benchmark S&P 500 fell 5.2 per cent last week, its biggest decline since January 2016.
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