The benchmark Sensex closed with gains of over 415 points on Monday after wading through choppy waters — as positive economic data from the US lifted sentiment yet generated apprehensions about rate hikes to cool the economy.
The 30-share gauge oscillated in a 493-point range between its highest and lowest points during the session. It spurted to an intra-day peak of 60498.48 — a rise of 689.51 points. The Sensex thereafter gave up some of the gains to close at 60224.46, with 25 of its constituents ending in the green.
On the NSE, the broader Nifty advanced 117.10 points or 0.67 per cent to settle at 17711.45. As many as 39 Nifty shares closed in the green.
The positive close came on the back of a risk-on sentiment, buoyed by encouraging data from the US.
Data released last week showed the US services sector growing at a robust pace: the S&P Global US Services PMI index rose to 50.6 in February from 46.8 in the preceding month. It was the highest reading since June last year.
“The major concerns that prevailed in the market during the previous weeks were the fear of aggressive Fed policy action, which led to a rise in treasury yields and US dollar, and the uncertainties surrounding Adani. All of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate,’’ Vinod Nair, head of research at Geojit Financial Services, said.
However, market circles said the strong economic data coming from the US has created misgivings of a heated economy that is likely to result in the US central bank continuing with its interest rate hikes albeit at a slower pace.
Market circles added that the upward movement seen in most of the Adani group stocks over the past four sessions has also brought some relief to the investors.
On Monday, eight of the 10 listed shares finished in the higher territory.
Among them, flagship Adani Enterprises saw its share price touching the Rs 2,000 mark during intra-day trades a gain of almost 6.42 per cent.
However, it could not sustain these levels and the counter ended at Rs 1,982.82 — showing a rise of 5.51 per cent.
Some of the group stocks also hit their upper circuit levels on Monday with Adani Power, Adani Transmission, Adani Energy, Adani Total Gas and Adani Wilmar rising 5 per cent while NDTV climbed 4.95 per cent and Adani Ports and Special Economic Zone nearly 1 per cent.
However, shares of Ambuja Cements declined 1.65 per cent and ACC fell 1.50 per cent.
The positive trend in the bourses impacted the rupee with the currency closing at a fresh one-month high. The domestic unit settled at 81.92 per dollar against the previous close of 81.96 against the greenback.