Benchmark equity indices rose nearly 1% on Monday, in line with heavy buying across sectors and global cues. Rupee strengthened by 18 paise on positive FPI inflows.
The S&P BSE Sensex rose 545.25 points, or 0.95%, to 58,115.50. Top Sensex gainers include M&M (6.15%), Reliance Industries (2.64%), Maruti (2.64%), Kotak Bank (2.42%) and Bharti Airtel (2.4%).
The NSE Nifty-50 index also closed at 17,340.05, down 181.80 points or 1.06%. Tata Motors was the top performer in Nifty with a gain of 6.77%.
“We have seen a promising start to the new week, with the initial hiccups being decisively bought by the bulls, and the uptrend continuing,” said Osho Krishna, Senior Analyst, Technical and Derivatives Research, Angel One Ltd.
“Optimism in global markets has fueled our market buoyancy, resulting in broad-based buying interest. The bulls have taken complete control of the market, which is quite evident on the technical charts with the formation of higher highs – higher lows,” he said.
On Monday, the rupee also closed at 79.06 with a gain of 18 paise.
“USD INR [US dollar Rupee] Anindya Banerjee, Vice President, Currency and Interest Rate Derivatives, Kotak Securities Ltd., “The improvement in forward premium has brought exporters to the market.” added.
“At the same time, the softening of the dollar overseas, a better growth outlook in India and a pick-up in forward premium have attracted carry traders in the market, who tend to go long. [on the] Rupee and less US$. In the short term, the bias remains to the downside. We expect a wider range of 78.70 and 79.40 on the spot.
Bank of Baroda economist Aditi Gupta said global currencies edged up against a weaker dollar and the rupee also closed at a new record low in a fortnight with gains of 0.9%.
“Apart from the RBI policy meeting, the US CPI and jobs report will guide the trajectory of the rupee in the coming two weeks. We expect the rupee to trade in the range of 79.15-79.75/$ in the next fortnight.