Positive global cues, along with fresh influx of foreign funds and buying support, lifted the Indian equity markets to their new closing highs for the last 11 months on Monday.The equity markets, which were also buoyed by a healthy progress of monsoon season, short covering and a strong rupee, closed with gains of more than 1.5 per cent.The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained 144.70 points or 1.74 per cent, at 8,467.90 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,358.23 points, closed at 27,626.69 points -- up 499.79 points or 1.84 per cent from the previous close at 27,126.90 points.The Sensex touched a high of 27,647.48 points and a low of 27,358.23 points during the intra-day trade.The BSE market breadth was skewed in favour of the bulls -- with 1,741 advances and 1,033 declines.On Friday, the benchmark indices had closed flat -- marginally in the red -- as profit booking, negative global cues and a weak rupee weighed heavy on investors' sentiments.
Initially on Monday, the benchmark indices opened on a high note, in-sync with their Asian peers, especially the Japanese markets.Other global cues such as a healthy rise in the US jobs market supported the positive sentiment.
The US Bureau of Labor Statistics last week reported that the total non-farm payroll employment increased by 287,000 in June, whereas the unemployment rate rose to 4.9 per cent.Besides, healthy progress of monsoon season, value buying after last week's falls, expectations of recapitalisation of state-run banks and a firm rupee enhanced investors' risk-taking appetite. The Indian rupee strengthened by 24 paise to 67.13 against a US dollar from its previous close of 67.37 to a greenback.In addition, data by Association of Mutual Funds in India (AMFI) for June showed robust investment activity by market participants.However, gains were capped due to lower crude oil prices and uncertainties over the upcoming macro-economic data like factory output -- Index of Industrial Production (IIP) -- for May and inflation figures for June. "Healthy jobs data from the US and the domestic Japanese cues led to a rise in Asian indices. This aided the Indian markets to a firm opening," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.Dhruv Desai, Director and Chief Operating Officer of Tradebulls, elaborated that IT, pharma, banking and auto stocks witnessed firm buying sentiments."Some Sugar sector stocks traded with sideways to bearish sentiments on profit booking," Desai said.
According to Nitasha Shankar, Senior Vice President for Research with YES Securities, broader markets ended with handsome gains; however, they underperformed the headlines indices marginally. "Midcap ended trade at a new all time high after gaining 1.40 per cent. Smallcap index is also approaching it all time high of 6,100," Shankar noted.In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 1,055.80 crore, and the domestic institutional investors (DIIs) divested scrip worth Rs 610.57 crore.Sector-wise, all the 19 sub-indices witnessed healthy buying. The S&P BSE automobile index augmented by 431.12 points, followed by the banking index, which surged by 426.79 points; and the healthcare index rose by 221.48 points.Major Sensex gainers during Monday's trade were: Adani Ports, up 4.78 per cent at Rs 216.95; Tata Motors, up 4.15 per cent at Rs 484.50; ICICI Bank, up 3.44 per cent at Rs 249.85; State Bank of India (SBI), up 2.84 per cent at Rs 224.60; and Maruti Suzuki, up 2.84 per cent at Rs 4,273.The only Sensex loser was Axis Bank, down 0.38 per cent at Rs 544.35.