HDFC Bank, ICICI Bank and Kotak Mahindra Bank were the top boosts to the Sensex
Domestic stock markets shares rose nearly 1 per cent on Monday propelled by a strong buying interest in shares of private banks amid hopes of a recovery from the damage caused by the coronavirus pandemic. The S&P BSE Sensex index rose 460.22 points to touch 38,894.94 at the strongest level recorded during the session, whereas the broader NSE Nifty 50 benchmark climbed to as high as 11,497.25, up 125.65 points from its previous close. Analysts awaited macroeconomic data due next week to assess the damage caused by the COVID-19 disease and the resultant lockdown.
The Sensex ended with a gain of 0.95 per cent at 38,799.08, and the Nifty settled up 0.83 per cent at 11,466.45.
Top percentage gainers in the 50-scrip Nifty basket of shares were Zee Entertainment, Kotak Mahindra Bank, IndusInd Bank, Bajaj Finance and HDFC Bank, closing between 2.69 per cent and 4.76 per cent higher.
On the other hand, PowerGrid, Mahindra & Mahindra, Adani Ports, Hindalco and Grasim – ending between 1.05 per cent and 2.01 per cent lower – were the worst hit among the 22 losers.
HDFC Bank, ICICI Bank and Kotak Mahindra Bank were the top boosts to the Sensex.
The Nifty IT index – comprising stocks of 10 technology sector stocks – ended 0.30 per cent lower, having declined as much as 0.83 per cent during the session as the rupee appreciated against the US dollar.
The rupee ended at a more than five-month high of 74.32 against the greenback. Strength in the domestic currency limits the profitability for exporters such as IT companies.
Global markets gained for a second straight session as risk appetite got a boost after the US drug regulator authorised the use of blood plasma from recovered patients as a treatment option for COVID-19.
“The global cues got boosted after US regulators authorised the use of blood plasma from recovered patients as a treatment option. On the domestic front, favourable government policies continue to push markets higher especially mid-caps and small-caps,” said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services.
Mid- and small-cap segment stocks rose, with the Nifty Smallcap 100 and Midcap 100 indices ending 1.67 per cent and 0.70 per cent respectively.
“Going ahead, the market may continue their positive momentum in the near term driven by positive news flows around vaccine development and favourable policies. However, intermittent profit booking may continue in between given tepid economic data and lofty valuations,” he added.
