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    Sensex ends at 4-month high on easing India-China tensions, firm global cues

    Synopsis

    As many as 25 Sensex stocks closed higher with RIL contributing the most to Sensex’s gains.

    BSE-13---PTIPTI
    Top private lender HDFC Bank climbed 2.68 per cent after it posted strong growth in deposits and advances for the June quarter on Saturday.
    Mumbai: BSE barometer Sensex ended higher for the fourth straight session on Monday, led by gains in financial stocks and index heavyweight Reliance Industries (RIL), as firm world equities and initial signs of ease in tensions between India and China boosted investor sentiment.

    That said, some caution still prevailed on Dalal Street as India rose to become the third-most impacted country in terms of coronavirus cases, after the US and Brazil.

    Both the benchmark indices - Sensex and Nifty - closed at their four-month highs today.

    “Indian indices ended with gains, in sync with solid global cues. Global markets rallied in hopes of a faster Chinese economic revival which could provide support to the global economy. The positivity regarding the recovery is extending to Indian markets also, in spite of surging infections, along with liquidity,” said Vinod Nair, Head of Research at Geojit Financial Services.

    “The first signs of de-escalation of India –China border tensions should also calm the markets. We maintain the sell-on-rise strategy and advise investors to trade with caution,” he added.

    Benchmark Sensex rose 466 points to close at 36,487. It had risen as much as 640 points earlier in the day. Peer Nifty climbed 156 points to end at 10,764.

    BSE snip 6xAgencies
    Sensex gainers & losers (Source: BSE)

    As many as 25 Sensex stocks closed higher with RIL contributing the most to Sensex’s gains. RIL shares logged a new high of Rs 1,858 after the company’s telecom arm Reliance Jio launched JioMeet app for the general public, which can support up to 100 users in a session. The stock pared some gains but still closed 3.57 per cent higher at Rs 1,851.40.

    Top private lender HDFC Bank climbed 2.68 per cent after it posted strong growth in deposits and advances for the June quarter on Saturday. Peer lenders Bajaj Finance and Kotak Mahindra Bank added 6.04 per cent and 1.08 per cent, respectively. Top software exporter Tata Consultancy Services (TCS) rose 2.91 per cent.

    The bulls continued to lead, with gainers beating losers in the ratio of 1.4:1 on the BSE.

    The broader market rose in sync with benchmark Sensex as BSE midcap and smallcap indices gained 1.27 per cent and 1.30 per cent, respectively.

    Among sectoral indices, BSE Energy index was the top gainer as it rose 2.97 per cent while BSE Realty index climbed 2.95 per cent. BSE Auto settled 2.93 per cent higher.

    Telecom equipment maker ITI jumped 20 per cent to a 52-week high of Rs 134.30 on reports that the government has barred state-owned telecom companies from using Chinese equipment for 4G upgradation.

    PSU stocks at large witnessed a rally on hopes of orders from the government. BSE PSU index was up 1.39 per cent. Bharat Heavy Electricals jumped 12.68 per cent while Hindustan copper rose 12.08 per cent. Bharat Dynamics climbed 13.65 per cent.

    Markets at a glance:
    • Benchmark indices rise for 4th day; hit 4-month peaks
    • Sensex up 1.29% or 467 points to 36,487
    • Nifty rises 1.47% or 156 points to 10,764
    • Top Sensex gainers: M&M up 7.58%, Bajaj Fin 6.04%, RIL 3.57%
    • Top Sensex losers: Bajaj Auto down 1.29%, HDFC 0.90%, Airtel 0.79%
    • RIL logs record high after it launches JioMeet app
    • Market breadth favours the bulls; advance-decline ratio at 1.4:1
    • Broader markets rise in sync; BSE Midcap up 1.27%, smallcap 1.30%
    • Only three sectoral indices close lower
    • BSE Energy top gainer, up 2.97%; Aegis Logistics up 8.75%, RIL next
    • BSE Realty up 2.95%; Brigade Enterprises up 14.03%, Prestige Estate 6.07%
    • BSE FMCG index drops 0.82%; Sanwaria down 4.94%, Future Consumer 4.79%
    • ITI jumps 20% to 52-week high on China equipment ban for state-run telcos
    • PSU stocks rally on hopes of order wins from government
    • BHEL up 12.68%, Bharat Dynamics up 13.65%, Hindustan Copper up 12.08%

    Who moved my market:
    • Firm world equities
    Global stock markets rallied to four-week highs on Monday as investors counted on a revival in Chinese activity to boost global growth, even as surging coronavirus cases delayed business re-openings across the United States, Reuters reported. MSCI's All-Country World Index, which tracks shares across 49 countries, rose 0.7 per cent to its highest since June 6 after the start of European trading..

    • Easing of tensions between India and China
    The first signs of de-escalation of border tensions between India and China emerged, as both sides pulled back their troops from the site of the June 15 clash in Galwan Valley.

    • Rapid rise in coronavirus cases
    India reported another record 24,422 new cases and 421 new deaths on Sunday, taking the total number of infections to 697,284 and fatalities to 19,700. India is now the third-worst impacted country in terms if coronavirus cases, ranking only behind US and Brazil.

    What to watch out for:
    • The rapidly rising new coronavirus cases are a major cause of concern.
    • The direction of global markets will be closely watched as the domestic market tends to follow the cues.
    • Progress on a domestic as well as overseas vaccine for Covid-19 treatment will be closely watched.
    • The June quarter corporate earnings, which start coming in next week, will provide a better picture of the damage caused by the pandemic-induced lockdown.
    • The data of Index of Industrial Production (IIP), which is scheduled to be released on July 10 will be on focus.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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