Closing Bell: Market extends rate cut-induced rally for 4th session; Sensex gains 256 points, Nifty settles at 25,103

The Indian share market continued its gaining streak for the fourth straight session on Monday, with the benchmark indices, the BSE Sensex and NSE Nifty, rising up to 0.4% in range-bound trade. The market sentiment was driven by firm global cues as U.S.-China trade talks sparked optimism, while the monetary bazooka fired by the RBI on Friday further lifted spirits.  

The BSE Sensex ended 256.22 points, or 0.31%, higher at 82,445.21, and the NSE Nifty closed at 25,103.20, up by 100.15 points, or 0.4%. During the session, the 30-share Sensex gained as much as 480 points, or 0.58%, to hit an intraday high of 82,669, and the Nifty50 climbed 157 points, or 0.63%, to touch high level of 25,160.

Outperforming the benchmark indices, the BSE midcap index ended 1.1% higher, while the BSE smallcap settled up by 1.2%.

"Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRR cut.  These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps. The positive U.S. jobs data and renewed optimism over U.S.-China trade talks lifted global sentiments. Domestically, even large caps expressed renewed momentum led by FII inflows,” said Vinod Nair, Head of Research, Geojit Investments Limited.

The market breadth, indicating the overall strength, was positive, with 2,809 stocks advancing out of total traded shares of 4,335 on the BSE. As many as 1,395 shares declined, while 131 ended unchanged. The data showed that 380 companies touched their 52-week high levels and 232 stocks slipped to their 52-week low level. 

In four sessions, the Sensex has risen 1,708 points, while the Nifty has climbed 2.3% during the same period. The total market capitalisation of all listed companies on the Bombay Stock Exchange surged by more than ₹11.07 lakh crore to ₹455.11 lakh crore.

Top gainers and losers

The top five gainers on the Sensex pack were Kotak Mahindra Bank , Bajaj Finance , Axis Bank , Power Grid Corporation , and IndusInd Bank , rising in the range of 1.6%-3.2%.

The BSE Sensex, which is a basket of 30 constituent stocks representing large and liquid companies, saw 9 shares ending in red. Eternal (Zomato) , ICICI Bank , Titan , Mahindra and Mahindra , and Adani Ports were among top five laggards, falling between 0.3% and 1.95%. 

Among individual stocks, shares of L&T Finance (LTF) rose over 2% after the non-banking financial company (NBFC) announced the completion of acquisition of the gold loan business of Paul Merchants Finance Private Ltd. (PMFL).

Bajaj Finance shares rallied over 4% on Monday, extending gaining streak for the second straight session, after the Bajaj group company unveiled the record date for stock split and bonus issue. 

Shares of Hindustan Zinc, a subsidiary of Vedanta, rose as much as 6% to ₹532.50 on the BSE, continuing their gaining streak for the third straight session amid hopes that its board would consider an interim dividend payout in a meeting this week.

Among sectors, the capital market index was the top gainer, rallying over 2.35%, whereas intraday profit booking was seen in selective defense and reality stocks. “Technically, after a gap-up open, the entire day saw range-bound activity. On daily charts, the index has formed a small candle, suggesting indecisiveness between the bulls and the bears,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Bank Nifty hits 57,000

Nifty Bank clocked a fresh record high of 57,049, setting the milestone and confirming a decisive breakout from its month-long ascending triangle formation. “This upward breach follows multiple failed attempts and finally clears the previous congestion zone with conviction,” said Om Mehra, Technical Research Analyst, SAMCO Securities.

Overall, the trend in Nifty Bank remains firmly positive, as reflected in the Nifty Bank-to-Nifty ratio charts, he added.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)