Bulls Return to D-St! Investors gain over Rs 3 lakh crore as Sensex soars 900 pts
Indian equity indices rebounded after five days of decline, driven by ICICI Bank's strong earnings. The Sensex and Nifty50 gained, despite recent foreign outflows. Major gainers included ICICI Bank, SBI, and Infosys. Crude oil prices fell, and the Indian rupee remained flat against the dollar.
Indian equity indices opened higher on Monday after five consecutive days of decline amid sustained foreign selling and lackluster corporate quarterly earnings. Today's gains were led by ICICI Bank, which beat September-quarter profit expectations due to healthy loan demand.
The BSE Sensex was trading 900 points, or 1.16%, higher at 80,295.22, while the Nifty50 rose 183 points, or 1.01%, to 24,425.30 around 10:42 am.
The market capitalisation of all listed companies on BSE surged by Rs 3.3 lakh crore to Rs 440.28 lakh crore.
Meanwhile, the Nifty 50 has dropped nearly 8% from its record-high levels hit on September 27, weighed down by foreign outflows for the last 20 sessions, as investors direct funds to China on Beijing's stimulus measures and relatively cheaper valuations.
Besides foreign selling, weak earnings have also hurt investor sentiment and added to the selling pressure, analysts stated
From the Sensex pack, ICICI Bank, SBI NTPC, Infosys, Bajaj Finserv, and Tata Motors were the top gainers, rising by up to 2.7%. Conversely, L&T, ITC, Tech Mabindra, Bharti Airtel, and JSW Steel opened lower.
Among individual stocks, IDFC First Bank fell 10% after the bank reported a 73% year-on-year decline in proft, dropping to Rs 201 crore for the quarter ended September 2024.
DLE shares surged over 4% after the real estate developer posted higher second-quarter profit driven by sales of newly launched houses.
On the sectoral front, the Nifty PSU Bank index rose 2%, led by Bank of Baroda, SBI, and PNB. The Nifty Financial Services, IT, Media, and Metal indices also opened higher. In the broader markets, the Nifty mid and small-cap indices opened flat.
Experts View
"The trend of flight to quality is likely to sustain given the good numbers from banking majors like HDFC Bank and ICICI Bank where valuations continue to be fair. Investors can profit from these polarised valuations," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"The global market structure may turn favourable after the subdued Israeli strikes against Iran avoiding the Iranian oil fields which has resulted in a sharp drop in crude prices. The imminent US presidential elections and the uncertainty associated with that will continue to weigh on markets," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a positive opening, Nifty can find support at 24,150 followed by 24,050 and 23,900. On the higher side, 24,300 can be an immediate resistance, followed by 24,400 and 24,500.
Asian Markets
Asian shares rose Monday, as the yen dipped in the midst of political uncertainty after Japan's ruling party lost its majority in Parliament's lower house in weekend elections.
Japan's benchmark Nikkei 225 surged 1.6% in morning trading. South Korea's Kospi edged up 0.6%. Hong Kong's Hang Seng added 0.1%, while the Shanghai Composite rose 0.3%.
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