Sensex, Nifty Off Day's High As Financial Stocks Recede

Domestic stock markets gave up some of the gains in late morning deals on Monday as select banking stocks lost steam. The S&P BSE Sensex rose as much as 363.58 points to touch 39,979.48 in early trade amid buying across sectors, and the NSE Nifty climbed to 11,975.05, up 104.4 points from the previous close. However, the markets pared the gains as banking stocks receded. Analysts say consumer inflation data due this week will be watched closely.

At 11:28 am, the Sensex traded 189.43 points - or 0.48 per cent - higher at 39,805.33, and the broader Nifty index was up 56.70 points - or 0.48 per cent - at 11,927.35.

Top gainers on the 50-scrip index at the time were Bharti Infratel, Tata Steel, Tech Mahindra, Britannia, Infosys and TCS, trading between 1.39 per cent and 2.99 per cent higher.

Infosys, TCS and ITC contributed the most to the advances in Sensex.

Dewan Housing Finance shares spiked as much as 9.46 per cent to touch an intraday high of Rs 91.40 apiece on the Bombay Stock Exchange (BSE), after three days of losses. Till Friday's close, DHFL shares have declined 66.52 per cent so far this year.

Reserve Bank of India Governor Shaktikanta Das has said the central bank would closely monitor the health of non-banking financial companies (NBFCs). The RBI would not hesitate to take corrective measures, if needed, to address issues in the shadow banking sector.

The comment comes at a time when there are fears that the NBFC sector may be facing a major crisis. "We will not hesitate to take any required steps to maintain financial stability in the short-, medium- and long-term," Mr Das said.

Equities in other Asian markets rose amid easing concerns on the US-Mexico trade front, with MSCI's index of Asia-Pacific shares outside Japan rising 0.7 per cent, led by strong gains in Hong Kong and Indonesia, and Tokyo's Nikkei advancing 1.1 per cent.

Global investors had feared that opening up another trade conflict, while still battling with China, could tip the US and other economies into recession.

The Sensex and Nifty had ended 0.22 per cent and 0.23 per cent higher respectively on Friday.

(With inputs from Reuters)