Markets: On West Asian peace hopes, Sensex, Nifty jump over 1.3%

Virendra Pandit

New Delhi: Indian benchmark indices surged over 1.3 per cent on Monday, with the Sensex soaring more than 1,000 points and the Nifty crossing the 24,000 mark, driven by easing crude oil prices, improving global sentiment, strong financial stocks, and optimism about a potential US-Iran deal.

While Sensex surged 1.42 per cent (1073.61 points) to close at 76488.96, Nifty rose 1.32 per cent (312.40 points) to close at 24031.70.

Market breadth remained firmly positive as advancing stocks outpaced losers.

Analysts attributed the rally to the RBI support to the rupee, the easing of crude oil prices, and improving global sentiment amid expectations of progress in a possible US-Iran peace deal.

Large-cap stocks led the gains, supported by attractive valuations and strong quarterly earnings from financial companies. Auto and realty stocks also witnessed buying interest.

Extending the gains for the second consecutive session, the two Indian equity benchmark indices traded sharply on Monday following a rally in global markets amid easing inflation concerns.

During the day, the Sensex touched a high of 76,559.07, up 1,144 points, or 1.5 per cent. Similarly, the Nifty 50 hit an intraday high of 24,054.45, up 335 points, or 1.41 per cent.

In the broader markets, Nifty Midcap 100 rose 0.9 per cent, while Nifty Smallcap 100 gained 1.3 per cent in early trade.

On the sectoral front, barring Nifty FMCG, all the indices closed higher. The Nifty PSU Bank index surged 2.9 per cent to emerge as the top sectoral gainer. The Nifty Private Bank index also climbed over 2 per cent.

The Nifty Bank index, which tracks the movement of 14 listed banks, and the Nifty Financial Services added more than 2 per cent each. The Nifty Auto and Realty finished higher by 1.9 per cent and 1.5 per cent, respectively.

India VIX, the fear gauge index, fell more than 6 per cent to 16.68.

In Monday’s rally, investors gained more than Rs. 6 trillion, as the total market capitalization of all BSE-listed companies jumped to Rs. 468.8 trillion, compared with the previous session’s all-India market capitalization of Rs. 462.25 trillion.