MUMBAI: Equity benchmarks, Sensex and NIfty, surged for the second consecutive session on Monday, buoyed by multiple positive triggers including India overtaking Japan to become the world’s fourth largest economy and the US decision to defer proposed tariffs on the European Union.
The 30-share BSE Sensex climbed 455.37 points or 0.56 per cent to close at 82,176.45. During the session, it had surged as much as 771.16 points or 0.94 per cent to touch an intraday high of 82,492.24. The NSE Nifty advanced 148 points or 0.60 per cent to end at 25,001.15, breaching the 25,000-mark for the first time.
The early onset of the southwest monsoon and the Reserve Bank of India’s announcement of a record Rs2.69 lakh crore dividend to the government for FY25 also added to the bullish sentiment, analysts said.
Among the major gainers on the Sensex were Mahindra & Mahindra, HCL Tech, Tata Motors, Nestle, ITC, Hindustan Unilever, Larsen & Toubro, and Tech Mahindra. On the other hand, Eternal, UltraTech Cement, Power Grid, Tata Steel and Kotak Mahindra Bank were among the top losers. Eternal dropped 4.51 per cent.
Fourth largest economy
NITI Aayog CEO B.V.R. Subrahmanyam said India has surpassed Japan to become the fourth largest economy globally.
The Reserve Bank’s dividend payout of Rs2.69 lakh crore for FY25 is 27.4 per cent higher than last year’s, providing timely fiscal support to the Centre amid growing expenditure pressures, including defence spending related to tensions with Pakistan and trade uncertainties linked to US tariffs.
“The US move to delay tariffs on the EU, combined with a weaker dollar index, lifted investor sentiment in domestic equities. These factors suggest easing trade tensions, which bodes well for global risk appetite. Moreover, the early monsoon and falling bond yields have encouraged continued focus on equities,” said Vinod Nair, Head of Research, Geojit Financial Services.
In Asia, South Korea’s Kospi and Japan’s Nikkei 225 ended higher, while China’s Shanghai Composite and Hong Kong’s Hang Seng closed in the red. European markets were trading higher in mid-session deals, while US markets had closed lower on Friday.
FIIs
Foreign Institutional Investors bought equities worth Rs1,794.59 crore on Friday, according to exchange data.
The India Meteorological Department confirmed that the southwest monsoon reached Kerala on Saturday, its earliest arrival since 2009, when it hit the coast on May 23.
Brent crude, the global oil benchmark, rose 0.17 per cent to $64.89 a barrel.
On Friday, the Sensex had jumped 769.09 points or 0.95 per cent to 81,721.08, while the Nifty rallied 243.45 points or 0.99 per cent to settle at 24,853.15.
