Stocks overcame a five-day losing streak with the benchmark Sensex spurting nearly 603 points on Monday as investor sentiment received a fresh boost following good numbers over the weekend and a crash in crude oil prices.
The BSE Sensex rallied 602.75 points or 0.76 per cent to reclaim the 80000 mark and settle at 80005.04. During the day, it jumped 1137.52 points to touch an intra-day peak of 80539.81. Similarly, the NSE Nifty soared 158.35 points to close at 24339.1
Market experts said the gains came on account of better than expected earnings from ICICI Bank, Yes Bank and Bandhan Bank.
The correction in crude oil prices was another major catalyst: the benchmark Brent crude was down more than 6 per cent as Israel’s retialiatory attack against Iran did not target its oil or nuclear facilities. The Brent crude of December was trading at $71.24 per barrel after opening at $72.77 against its previous close of $76.05 to a barrel.
“On the global macro front, crude oil prices corrected over 6 per cent as Israel’s strike avoided Iran’s crude infrastructure. Yen dipped to a three-month low amid elections in Japan,” Vikram Kasat, head-advisory PL Capital-Prabhudas Lilladher said.
“The next few months are crucial given the US presidential elections, state elections in India, demand scenario in festival and wedding season and food inflation trends in India. With Diwali approaching, the sentiment is expected to remain upbeat in this holiday-shortened trading week.”
ICICI Bank led the list of gainers from the Sensex pack as it climbed 3 per cent. The lender posted a 14.5 per cent growth in standalone profit at ₹11,746 crore for the second quarter. The other gainers included JSW Steel, Mahindra & Mahindra, Adani Ports, Tata Steel, Sun Pharma, Hindustan Unilever, Tata Motors and State Bank of India.
Axis Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank and Maruti were the laggards.
The bourses will hold a special one-hour Muhurat session on Friday. Though the second quarter results have been muted, brokerages remain bullish about the market’s prospects for the next one year.
“The market exhibited a rebound after continuous selloff last week. Positive results from banks and a slump in oil prices in expectation of an ease in retaliations in West Asia aided investor sentiment,” Vinod Nair, head of research, Geojit Financial Services, said.
“Stability in the broad-based rally requires more evidence from earnings, which are currently in the doldrums of weak demand and margin pressure.”
Provisional data showed domestic institutions buying stocks worth ₹1,401 crore and foreign institutional investors being net sellers to the tune of ₹3,228 crore on Monday.
RIL bonus
The Reliance Industries Ltd (RIL) share turned ex-bonus on Monday. On September 5, the board of RIL had approved the issue of bonus shares in the ratio of 1:1.
The previous bonus issue was in 2017, in the ratio of 1:1. This was followed by a rights issue in 2020.
The RIL share ended at ₹1,334.40, a gain of 0.49 per cent over the last close.
Waaree shines
Shares of solar panel maker Waaree Energies Ltd on Monday ended with a premium of 56 per cent against the issue price of ₹1,503.
The stock made its market debut at ₹2,550, reflecting a jump of 69.66 per cent from the issue price on the BSE. During the day, it surged 72.98 per cent to ₹2,600.
