Stock Market: Sensex Rises 390 Points, Nifty Trades Above 17,650; PSU Banks Lead

Stock update: Mahindra & Mahindra, IndusInd Bank, Infosys, Bajaj Finserv, and State Bank of India were trading in the green on the Sensex platform

Sensex and Nifty, the two equity benchmarks, on Monday that open flat on a bearish note due to weak global market trends, soon recovered all the early lost ground and were trading in the green.

At 10.45 am, the BSE Sensex was up 390 points at 59,230, while the broader NSE Nifty was trading at 17,653, up 123 points.

On the 30-share Sensex platform, Mahindra & Mahindra, IndusInd Bank, Infosys, Bajaj Finserv, and State Bank of India were trading in the green. On the flip side, Maruti, UltraTech Cement, Asian Paints, Titan, Dr Reddy's, Tata Steel, HCL Technologies, and ICICI Bank were the major laggards in early trade.

In the broader markets, Nifty SmallCap 100 and Nifty MidCap100 declined up to 1 per cent.

Apart from Nifty PSU Bank, all sectors nosedived in negative territory. Nifty Media, Nifty Pharma, and Nifty Realty indices dropped the most, up to 1 per cent.

In the previous session on Friday, the 30-share BSE benchmark had tanked 1,093 points (1.82 per cent) to settle at 58,840, while the Nifty declined 346 points (1.94 per cent) to 17,530.

"The near-term texture of the market has turned weak and the buy on dips strategy is unlikely to work in the present risk-off global environment. FIIs turning sellers is a short-term negative. The market is likely to take a decisive trend only after the Fed policy announcement on 21st September," said V K Vijayakumar, chief investment strategist, Geojit Financial Services.

Elsewhere in Asia, markets in Seoul, Shanghai, Tokyo and Hong Kong were trading lower. The US markets had ended in the negative territory on Friday.

The international oil benchmark Brent crude climbed 0.62 per cent to $91.92 per barrel.

Foreign institutional investors (FIIs) offloaded shares worth Rs 3,260.05 crore on Friday, according to data available with the BSE.

Meanwhile, the rupee appreciated 14 paise to 79.64 against the US dollar in early trade on Monday in line with its Asian peers and as the American currency retreated from its elevated levels. On Friday, the rupee declined by 7 paise to close at 79.78 against the dollar.