Indian stock markets witnessed a significant rebound on Monday, with the Sensex climbing 473 points and the Nifty gaining 133 points, as softer-than-expected US jobs data and easing crude oil prices reduced fears of aggressive monetary tightening by the US Federal Reserve.
Photograph: ANI Photo
Key Points
- Indian benchmark equity indices, Sensex and Nifty, recorded gains on Monday, with Sensex climbing 472.77 points and Nifty rising 133.80 points.
- The market rebound was primarily influenced by softer-than-expected US jobs data, which has tempered expectations of aggressive interest rate hikes by the US Federal Reserve.
- Easing crude oil prices, with Brent hovering around $102 a barrel, also contributed to the positive market sentiment by providing relief on the inflation front.
- Major gainers among Sensex firms included ITC, Eternal, Bharti Airtel, and Reliance Industries, while HCL Tech and HDFC Bank were among the laggards.
- Attention is now shifting to the upcoming RBI policy decision and the corporate earnings season, which will further influence market direction.
Benchmark equity indices Sensex and Nifty ended higher on Monday, as softer-than-expected US jobs data reduced expectations of aggressive monetary tightening by the US Federal Reserve, supporting risk appetite across emerging markets.
The 30-share BSE Sensex jumped 472.77 points, or 0.66 per cent, to settle at 72,382.47. During the day, it surged 722.23 points, or 1 per cent, to 72,631.93.
The 50-share NSE Nifty climbed 133.80 points, or 0.60 per cent, to end at 22,555.75.
Market Movers and Shakers
From the 30 Sensex firms, ITC, Eternal, Bharti Airtel, Bajaj Finance, Adani Ports, ICICI Bank, Reliance Industries and Larsen & Toubro were among the major winners.
HCL Tech, HDFC Bank, Sun Pharma, Infosys and Asian Paints were among the laggards.
Anup Bagchi is set to be the next chief executive and managing director of HDFC Bank, with the Reserve Bank clearing his name to lead the largest private sector lender on Thursday.
Bagchi, who has been associated with rival ICICI Bank and its subsidiaries since 1992, will succeed Sashidhar Jagdishan, whose six-year stint in the corner office was marred by allegations of unethical conduct and questionable governance practices towards the end.
He will take over as the MD and CEO from October 27, and the appointment is for three years, as per an exchange disclosure by the lender.
Global and Domestic Factors
“Markets witnessed a strong recovery on Monday, taking a breather from the recent corrective trend and gaining over half a per cent. Global cues turned relatively supportive as crude oil prices eased from recent highs, with Brent hovering around $102 a barrel, providing some relief on the inflation front.
“Softer-than-expected US jobs data also reduced expectations of aggressive monetary tightening by the US Federal Reserve, supporting risk appetite across emerging markets,” Ajit Mishra, SVP – research, Religare Broking, said.
Brent crude, the global oil benchmark, was up 0.19 per cent to $102.4 per barrel.
“Markets staged a recovery, supported by softer-than-expected US jobs data and a moderation in crude oil prices, providing some relief to investors assessing the near-term interest rate outlook. Attention is now shifting to the RBI policy decision and the upcoming earnings season,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
International Market Performance
In Asian markets, Japan’s Nikkei 225 index jumped over 2 per cent, while the Hang Seng index ended marginally higher. Equity markets were closed in South Korea and Shanghai for holidays.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,484.22 crore on Thursday, according to exchange data.
