Sensex snaps 2-day losing streak; IT stocks shine

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Mumbai: The Sensex and Nifty made a positive start to the week on Monday as IT, banking and finance counters saw robust buying amid a supportive trend in global equities.

A strengthening rupee, which climbed 17 paise against the US dollar, added to the momentum.

Recovering from a two-session slide, the 30-share BSE Sensex darted up 226.47 points or 0.41 per cent to close at 55,555.79. Similarly, the broader NSE Nifty advanced 45.95 points or 0.28 per cent to 16,496.45.

HCL Tech was the top gainer in the Sensex pack, spurting 4.10 per cent, followed by TCS, Bajaj Finserv, Nestle India, Bharti Airtel, Bajaj Finance, Tech Mahindra and Kotak Bank.

On the other hand, M&M, Bajaj Auto, UltraTech Cement, PowerGrid, ITC, Asian Paints and Tata Steel were among the laggards, shedding up to 2.50 per cent.

“Heavy selling continued in small and mid-cap stocks, while headline indices traded positive due to strong support from IT stock and positive global peers. The key factor for the correction is the good performance during 2020-21, leading to peak valuations while liquidity is expected to normalise in the future.

“The ongoing correction will provide an opportunity for long-term investors to re-enter quality stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, said, “Indian markets started on a positive note following positive Asian markets cues after Hong Kong’s Hang Seng edged out of bear territory seen in last week. During the afternoon session markets recovered from lows seen post opening session led by buying in Teck, IT and Energy stocks.”

“…Sentiments were upbeat as Crisil Ratings revised the credit quality outlook of India Inc for fiscal 2022 to positive from cautiously optimistic earlier. Also, positive European and western markets after a losing week added strength to the markets as investors eye a key event where the Federal Reserve could hint at prospects for tapering stimulus,” he added.

Sectorally, BSE teck, IT, telecom, energy, oil and gas, bankex and finance indices ended up to 1.26 per cent higher, while basic materials, auto, industrials, realty and healthcare closed in the red.

Broader BSE midcap and smallcap indices underperformed the benchmarks, slumping up to 1.55 per cent.

World stocks were in better shape after last week’s sell-off, though the rising Delta variant cases and worries over the US Federal Reserve tapering its asset purchases clouded investor sentiment.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with strong gains.

Equities in Europe were also trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude surged 2.95 per cent to USD 66.66 per barrel.

The rupee jumped 17 paise to close at 74.22 against the US dollar on Monday amid a weak American currency overseas.

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