Sensex jumps over 100 points, Nifty above 12,200-mark; banking, FMCG, IT stocks among early gainers

  • BSE index was trading 109.18 points or 0.26 percent higher at 41,684.32, and the broader NSE Nifty rose 27.60 points or 0.23 percent to 12,273.40

  • ITC was the top gainer in the Sensex pack, rising up to 1.50 percent, followed by Mahindra and Mahindra, HDFC Bank, Kotak Bank, TCS, Maruti and Sun Pharma

  • The rupee appreciated 2 paise to 71.32 against the US dollar in morning session.

BSE Sensex jumped over 100 points in the opening session on Monday tracking gains in banking, FMCG and IT stocks.

The 30-share BSE index was trading 109.18 points or 0.26 percent higher at 41,684.32, and the broader NSE Nifty rose 27.60 points or 0.23 percent to 12,273.40.

ITC was the top gainer in the Sensex pack, rising up to 1.50 percent, followed by Mahindra and Mahindra, HDFC Bank, Kotak Bank, TCS, Maruti and Sun Pharma.

On the other hand, RIL was the top loser, shedding up to 0.76 percent. SBI, HUL, Tata Steel and Infosys were also trading in the red.

In the previous session, the 30-share gauge ended 411.38 points, or 1 percent, higher at 41,575.14. Similarly, the broader NSE Nifty closed 119.25 points, or 0.98 percent, up at 12,245.80, according to PTI.

Meanwhile, on a net basis, foreign institutional investors bought equities worth Rs 81.37 crore, while domestic institutional investors purchased shares worth Rs 125.77 crore on Friday, data available with the stock exchange showed.

According to experts, traders appeared keen on creating fresh positions post expiry of December series derivatives contracts.

The domestic market is awaiting cues from the budget after Finance Minister Nirmala Sitharaman on Saturday said that honest commercial decisions taken by bankers will be protected.

In a meeting with heads of the public sector banks (PSBs), also attended by the CBI Director, she assured the bankers that a distinction would be made between genuine commercial failures and culpability.

Rupee rises 4 paise to 71.31

Meanwhile, the rupee appreciated 2 paise to 71.32 against the US dollar in morning session.

Asian shares jump

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.2 percent, turning around from an earlier loss. The index rose to its highest since 19 June, according to Reuters.

Chinese blue chips, which had started the day lower, were up 1.24 percent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8 percent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares remained down 0.44 percent as investors continued to consolidate recent gains. Japan’s Nikkei stock index slid 0.58 percent. Easing trade war worries and reduced uncertainty over the United Kingdom’s plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 percent and putting it on track for its strongest month since January.

Kay Van-Petersen, the global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has “just left us drifting up higher. So even if there is a pullback... I don’t think it’s going to be significant by any means.”

Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08 percent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 percent to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.18 percent to $68.28 per barrel, while US West Texas Intermediate crude added 0.05 percent to $61.75, reversing an earlier decline.

Oil’s gains followed news of US air strikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that “additional actions” may be taken to defend US interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

“Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by escalation in Syria,” he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq’s oil ministry said on Sunday that the halting of oil production at Iraq’s southern Nassiriya oilfield by protestors would not affect the country’s exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world’s biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to 20 December, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade. The precious metal on Monday rose 0.33 percent to $1,515.40 per ounce on the spot market.

In the currency market, the dollar was 0.30 percent lower against the yen at 109.08 and the euro was up 0.27 percent on the day at $1.1194.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2 percent to 96.736.

The yield on benchmark 10-year Treasury notes was at 1.8752 percent compared with its US close of 1.873 percent on Friday, while the two-year yield edged down to 1.5832 percent compared with a US close of 1.589 percent.

--With inputs from agencies

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Updated Date: Dec 30, 2019 10:22:58 IST