Market scales 4-mth high on global rally, easing Indo-China tensions

Broader midcap and smallcap indices surged up to 1.30 per cent. Market analysts said that apart from firm global cues, positive sentiment led by signs of easing border tension between India and China helped boost investor sentiment, though growing COVID-19 cases remained a concern going forward for the participants.

Market benchmarks Sensex and Nifty hit their four-month highs on Monday, tracking upbeat global bourses and signs of easing tensions between India and China. The BSE gauge Sensex closed 465.86 points or 1.29 percent, higher at 36,487.28; while the NSE barometer, Nifty settled 156.30 points, or 1.47 percent, up at 10,763.65.

Both Sensex and Nifty logged their fourth consecutive gains, helped mainly by index heavyweights Reliance Industries (RIL) and HDFC Bank. RIL shares zoomed 3.57 percent to close at an all-time high of Rs 1,851.40 per unit – helping the company’s market valuation surged to Rs 11.73 lakh crore.

In terms of percentage gains on the Sensex, Mahindra and Mahindra topped the chart with over 7 percent rise, followed by Bajaj Finance, RIL, Maruti, TCS, HDFC Bank, and Tata Steel. On the other hand, Bajaj Auto, HDFC, Bharti Airtel, HUL and HCL Tech were the five scrips ended with losses.

Sectorally, BSE energy, realty, auto, metal, industrials, basic materials, and capital goods indices rallied up to 2.97 percent; while FMCG, healthcare, and telecom ended in the red. Broader midcap and smallcap indices surged up to 1.30 percent.

Market analysts said that apart from firm global cues, positive sentiment led by signs of easing border tension between India and China helped boost investor sentiment, though growing COVID-19 cases remained a concern going forward for the participants. In appositive development, both Indian and Chinese sides have agreed that the maintenance of peace and tranquillity was essential for the development of bilateral ties between New Delhi and Beijing.

The Indian government in a statement said that National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi held a telephonic conversation on Sunday during which they agreed on disengagement of troops along the Line of Actual Control (LAC) at the earliest. “Disengagement in the Galwan Valley fired up the bulls today as Reliance, Maruti and Bajaj Finance notched up smart gains. The key highlight of the day was the participation seen in the broader market in select PSU stocks,” S Ranganathan, Head of Research at LKP securities, said.

Globally, massive buying momentum in equities on hopes of a COVID-19 vaccine and improving global macroeconomic conditions too boosted sentiment, traders said. In Asian, Shanghai rallied around 6 percent, Hong Kong 4 percent, Tokyo and Seoul up to 2 percent on hopes of more government stimulus to support economic recovery.

Stock exchanges in Europe too jumped up to 2 percent in early deals. Meanwhile, international oil benchmark Brent crude futures rose 1.43 percent to USD 43.42 per barrel.

On the currency front, the rupee pared initial gains and settled 2 paise down at 74.68 against the US dollar. Meanwhile, India went past Russia to become the third worst-hit nation by the COVID-19 pandemic. Only the US and Brazil are ahead of India in terms of total coronavirus infections.

According to the Monday morning update of the Union Health Ministry, a single-day jump of 24,248 COVID-19 cases pushed India's tally to 6,97,413.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)