Stock markets continue to rally in early trade for 4th day running
The 30-share BSE Sensex climbed 131.32 points to 62,977.70 in early trade. The NSE Nifty advanced 49.6 points to 18,648.25.
From the Sensex pack, ITC, UltraTech Cement, Kotak Mahindra Bank, HCL Technologies, NTPC, Titan, Bharti Airtel, Bajaj Finance, Larsen & Toubro and Reliance Industries were the biggest gainers.
Nestle, Tata Steel, HDFC, Tata Consultancy Services and HDFC Bank were the laggards.
In Asian markets, Tokyo, Shanghai and Hong Kong were trading lower, while Seoul quoted in the green.
Foreign Institutional Investors (FIIs) were net buyers on Monday as they bought equities worth Rs 1,758.16 crore, according to exchange data.
“FIIs’ relentless buying and hopes of a Fed rate hike pause could help maintain the buying momentum,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Meanwhile, global oil benchmark Brent crude dipped 0.52 per cent to $76.67 a barrel.
“So long as this foreign portfolio liquidity remains strong, the market will remain resilient. The underlying market momentum indicates an uptrend that can take the market higher. But investors need not expect a sustained sharp rally since valuations don’t warrant that and profit-booking will exert selling pressure,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The US markets were closed on Monday for Memorial Day, said Deepak Jasani, Head of Retail Research, HDFC securities.
“While the debt ceiling deal is likely to calm market jitters, and with a strong earnings season out of the way, investors now turn their attention to the economic outlook and path of interest rates,” Jasani added.
The Sensex climbed 344.69 points or 0.55 per cent to settle at 62,846.38 on Monday. The Nifty gained 99.30 points or 0.54 per cent to end at 18,598.65.