Share Markets Close Higher, Sensex Over 80,600, Nifty Nearly 200 Points Higher
Notably, both benchmarks began today’s trading session amid heavy volatility, but started climbing soon after markets opened.
Dalal Street continued to rally ahead on Monday and ended trading with major gains. The BSE Sensex soared almost 750 points and closed above 80,600, while the NSE Nifty50 ended the session above 24,550, climbing close to 200 points.
On the 30-share Sensex, BEL, Bharti Airtel, and Maruti remained the only exceptions in red. Meanwhile, the gainers included Tata Motors, Eternal, Trent, SBI, and UltraTech Cement.
In the broader markets, the Nifty100 jumped close to 1 per cent. Sectorally, the PSU Bank index ended the session more than 2 per cent higher.
Notably, both benchmarks began today’s trading session amid heavy volatility, but started climbing soon after markets opened. The Sensex climbed marginally to 79,862, while the Nifty50 slipped 3 points and traded at 24,360, as of 9:15 AM on Monday.
Vinod Nair, Head of Research, Geojit Investments Ltd, explained, "The market saw a relief rally post a 3-month low; a positive global cue and a gradual return of FIIs supported the sentiment. Investors are positively assessing the upcoming US-Russia Summit this week, which may possibly give way to a de-escalation in geopolitical tensions.While a near-term caution may still prevail, the more definite assessment of the US trade and growth impact is yet to be assessed fully."
Foreign Investors, Rupee Movements
Official exchange data revealed that foreign institutional investors (FIIs) turned net buyers and infused Rs 1,932.81 crore in Indian equities on Friday. Further, both indices, Sensex and Nifty, ended the last trading session on Friday with significant gains. Global oil benchmark Brent crude dipped 0.45 per cent to tpuch $66.29 a barrel.
The Indian rupee depreciated 8 paise to settle at 87.66 (provisional) against the US dollar today. This dip was attributed to consistent demand for dollar by importers and a recovery in oil prices. Forex traders noted that the domestic unit erased inital gains made on robust oil prices and foreign fund outflows.
Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan noted, "We expect the rupee to trade with a negative bias amid uncertainty over trade tariff issues between India and US. Persistent FII outflows may also weigh on the domestic currency. However, weak US dollar may support the rupee at lower levels." Domestically, markets awaited inflation data, scheduled to be released on Tuesday, with the WPI figures lined up for August 14.
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