NEW DELHI – Stock indices rose on Monday after falling in the previous 3 sessions, with the benchmark BSE Sensex gaining nearly 850 points on positive trends in global markets.
The 30-part BSE Sensex was up 846.94 points, or 1.41%, to 60,747.31. On the day, it rose 989.04 points, or 1.65%, to 60,889.41.
The broader NSE Nifty was up 241.75 points, or 1.35%, to end at 18,101.20.
From the Sensex package, the top winners were Mahindra & Mahindra, HCL Technologies, IndusInd Bank, Tata Consultancy Services, Bharti Airtel, Tech Mahindra, Wipro, Infosys, Reliance Industries and Axis Bank.
Both indexes posted their biggest intraday gains in nearly two months after posting weekly losses of over 1% each in the first week of 2023.
Here are the top reasons for today’s market rally:
* IT and auto stocks shine
TCS topped its results by 3.4%, while titanium was the biggest loser on the Nifty 50, slipping 2.1% after the jewelry maker reported below-expected quarterly sales growth.
Metals rose 1.43% on hopes of a rebound in demand after the largest metals consumer, China, reopened its borders.
Shares in Reliance Industries also saw heavy buying today, as the stock rose 2.34%.
“These gains were also absorbed by the domestic market, with IT being the biggest gainer ahead of the sector earnings release as the benign US economy boosted sector optimism,” Vinod Nair, head of research at Geojit Financial Services, told PTI.
* Q3 earnings season begins
Shares in the IT sector gained 2.83%, making it the best-performing sector among Nifty’s other 13 major industry indices.
Tata Consultancy Services (TCS) is about to kick off its Q3 earnings season later today.
Quarterly earnings reports from top IT firms Infosys, HCL Tech and Wipro are due later this week.
* Positive global hints
The MSCI Asia Pacific Index rose as much as 1.9% on Monday, rising to over 20% from a low on Oct. 24. Gauges in Hong Kong, Taiwan and South Korea led to gains during the session, while Japan was closed for a public holiday.
“Wall Street rose on anticipation of a less aggressive Fed as wage growth slowed and service activity contracted, fueling bets on easing inflation. In addition, higher-than-expected payrolls growth in December raised the possibility of a softer landing for the US economy.” Nair told PTI.
* China stocks rise
Stocks in China got off to a strong start to 2023 after being caught in a downward spiral over the past year amid concerns over the economic impact of virus restrictions. Easing regulatory risks and further support measures to revitalize the ailing real estate sector have given the market an additional boost and supported the Asia rally.
An indicator for Hong Kong-listed Chinese stocks rose 2% on Monday, taking its full-year gain to nearly 9%. alibaba group holding ltd led a rally in technology stocks as comments from People’s Bank of China party secretary Guo Shuqing that a crackdown on the sector is ending likely further persuaded traders.
Goldman Sachs Group Inc. expects Chinese stocks to continue their rally on policy decisions in areas such as housing and internet regulation.
* Rupee gains
The rupee was up 29 paises against the US dollar on Monday to close at 82.37 (prelim), helped by a weaker overseas greenback and a firm trend in domestic stocks.
“In recent days, the rupee has underperformed among its regional peers amid headwinds from a large current account deficit and outflows of foreign funds. But now, when we look at the recent high-frequency data and the rebound in risky assets, we could see the rupee starting to rally against the other Asian currencies,” Dilip Parmar, research analyst at HDFC Securities told PTI.
(With contributions from agencies)