The benchmark index on Monday galloped past the 58000-mark and the rupee ended with gains of 24 paise against the dollar as sentiments got a boost from the return of foreign portfolio investors (FPIs) and encouraging economic data even as comments by the US Federal Reserve on recession has begun to dissipate fears of gloom and doom by the end of this year.

Bonds also had a good start to the week with yields on the benchmark 10-year paper falling to 7.24 per cent — a level that was previously seen on May 12. On Friday, it had closed at 7.32 per cent.

Declining bond yields indicate a rally in their prices. In the equity markets, key indices closed at over three-month highs on robust GST collections in July and the country’s manufacturing activity expanding at its fastest pace in 8 months. The rally got a leg-up on the data on FPI which showed they were net buyers of Rs 4,989 crore in July.

This is for the first time after October 2021 that the monthly data is showing a positive tick. The 30-share BSE Sensex opened in the green at 57823.10 and rose past the 58000 mark post noon hours. It hit a day’s high of 58170.67 and later finished at 58115.60 — an increase of 545.25 points or 0.95 per cent.

It was for the first time after April 13 this year that the benchmark index is finishing above the 58000-level. The broader NSE Nifty advanced 181.80 points or 1.06 per cent to settle at 17340.05.

Auto stocks soar

Investors accumulated auto stocks following strong July sales data that generated optimism that the sector is in a recovery mode because of falling commodity prices and an improvement in component supply. Shares of Mahindra & Mahindra stormed up the charts with the stock surging 6.15 per cent to close at Rs 1,236.35 after it reported a 33 per cent increase in domestic passenger vehicles sales in July at 28,053 units against 21,046 units in the same month last year.

The growth was led by its utility vehicles. During intra-day trades, the stock hit a new high of Rs 1,248.40 in the BSE. The Maruti scrip jumped Rs 231.55 to Rs 9,004 an increase of 2.64 per cent. The company’s domestic sales rose 6.82 per cent to 1.42 lakh units. Meanwhile, the rupee is poised to appreciate beyond the 79-levels against the dollar because of the softening of crude prices, a weak greenback overseas and positive flows from FPIs. In the inter-bank forex markets, the rupee, which opened at 79.18, closed at 79.02 against the previous finish of 79.26.