MUMBAI: Stock markets broke a five-day losing streak on Monday, with the benchmark Sensex bouncing back 602 points, driven by buying in ICICI Bank, strong global trends, and continuous domestic institutional investment.
The BSE Sensex surged 602.75 points or 0.76 per cent to close at 80,005.04. In intraday trading, it climbed as high as 80,539.81, marking a rise of 1,137.52 points or 1.43 per cent. The NSE Nifty also advanced, gaining 158.35 points or 0.65 per cent to settle at 24,339.15. A steep drop in global crude oil prices helped boost market sentiment, traders said.
ICICI Bank leads the gains
Among the 30 Sensex stocks, ICICI Bank led the gains with a 3 per cent rise after the private lender reported a 14.5 per cent increase in standalone profit to Rs11,746 crore for Q2 ending September 2024. ‘
Other major gainers included JSW Steel, Mahindra & Mahindra, Adani Ports, Tata Steel, Sun Pharma, Hindustan Unilever, Tata Motors, and State Bank of India. On the downside, Axis Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Maruti saw declines.
The market exhibited a rebound after a continuous selloff last week. Positive bank results and a decline in oil prices, anticipating eased tensions in the Middle East lifted investor sentiment.
However, a sustained rally requires more robust earnings data amid current challenges of weak demand and margin pressures.
Companies with stronger balance sheets and growth potential are likely to outperform as the market stabilises,” commented Vinod Nair, Head of Research at Geojit Financial Services.
On the broader market, the BSE smallcap index increased by 1.11 per cent, while the midcap index rose 0.69 per cent.
Commodities jump 1.79%
Among sectoral indices, commodities jumped 1.79 per cent, followed by gains in realty (1.40 per cent), telecommunications (1.37 per cent), healthcare (1.36 per cent), and metal (1.21 per cent). Sectors like services, energy, and capital goods saw marginal changes at 0.01%.
In Asia, markets in Seoul, Tokyo, Shanghai, and Hong Kong all closed higher. European stocks traded in positive territory, while the US markets ended mixed on Friday.
On the trading front, Foreign Institutional Investors (FIIs) sold equities worth Rs3,036.75 crore last Friday, while Domestic Institutional Investors (DIIs) made purchases totaling Rs4,159.29 crore, according to exchange data.
Brent crude, the global oil benchmark, declined by 5.84%, settling at $71.54 per barrel. On the previous trading session, the BSE benchmark had fallen 662.87 points or 0.83 per cent to 79,402.29, while the Nifty dropped 218.60 points or 0.90 per cent to 24,180.80.
