Domestic stock markets extended gains to a second straight session, with the BSE Sensex closing 135 points higher on Monday. BSE benchmark index Sensex closed at 37,691 while the NSE Nifty settled 26 points, or 0.23 per cent, higher at 11,387. That marked record closing highs for both the indices. Banking and financial stocks led advances in the markets while HDFC Asset Management Company shares registered a strong market debut. Indian equities also took support from mild gains in other Asian peers.
Here are 10 things to know about Monday's trading session:
1. Top gainers on the Nifty 50 were State Bank of India (SBI), Axis Bank and ICICI Bank, ending between 3.1 per cent and 3.7 per cent higher.
2. The Nifty Bank, the NSE's sectoral index comprising banking stocks, rose 0.7 per cent. Other prominent gainers included state-run Punjab National Bank, ending 2 per cent higher. The Nifty PSU bank settled 2.6 per cent higher. Indian Bank, Union Bank of India and Bank of India rose around 2.5-3 per cent.
3. "Industry facing private sector banks and PSU banks breathed life into the Bank Nifty, which did well despite the consumer facing private sector banks sulking," said VK Sharma, head private client group and capital market strategy at HDFC Securities.
4. Metal stocks provided further supported to the broader markets, with the Nifty Metal also closing 0.7 per cent higher. Hindalco Industries, Jindal Steel, Hindustan Zinc and APL Apollo Tubes - finishing between 1 per cent and 5.6 per cent - led the advances on the sectoral index.
5. Hopes of healthy monsoon rains supported views that rural demand was expected to rise in the coming months, according to analysts.Weather office IMD or India Meteorological Department had last week forecast average rainfall during the final two months of the crucial monsoon season. Southwest monsoon, which spans from June to September, is crucial for agriculture growth in India as it delivers nearly 70 per cent of rainfall required for farming.
6. "Noticeable buying interest in midcap and smallcap pack kept the participants busy. We may see some consolidation in Nifty around the current level prior to further rise... progress of monsoon and global cues will also be closely watched," said Jayant Manglik, president, Religare Broking.
7. Midcap and smallcap shares also registered mild gains. The Nifty Midcap 50 closed 0.2 per cent higher, led by IDFC, SRF, Muthoot Finance and Reliance Infra, rising around 3-6 per cent.
8. HDFC Asset Management Company shares ended 65 per cent higher at Rs 1,815.25 on the NSE compared to the issue price of Rs 1,100, following an initial public offering of Rs 2,800 crore.
9. Indian equities also took support from mild gains in other Asian peers. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.33 per cent China's efforts to stop sharp declines in its currency and capital flight supported sentiment in the region. However, escalating Sino-US trade conflict capped gains.
10. Meanwhile, domestic institutional investors (DIIs) net purchased shares worth Rs 87.08 crore last Friday, while net sales by foreign portfolio investors (FPIs) stood at Rs 5.87 crore, provisional data from stock exchange NSE showed.
(With agency inputs)
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