Kotak Mahindra Bank, Sun Pharma, Dr Reddy’s and ITC were among the laggards.
Benchmark stock indices Sensex and Nifty rose nearly 2 per cent on Monday, extending their winning streak for the third consecutive day with gains in index majors Reliance Industries, Infosys and TCS amid a firming trend in global equities.
The 30-share BSE Sensex ended four-week high at 55,925.74, up 1,041.08 points or 1.90 per cent. During the day, it rose 1,197.99 points or 2.18 per cent to touch a high of 56,082.65. 26 stocks of Sensex closed in green mark.
The broader NSE Nifty jumped 308.95 points or 1.89 per cent to close at a nearly four-week high of 16,661.40, with 45 of its constituents ending with gains.
On Monday, the Sensex rose 4 per cent or 2,176 points in a three-day rally, while the Nifty rose 635 points or 3.92 per cent.
Reports of a rally in global stocks following an early onset of monsoon in Kerala and easing inflation concerns and a less aggressive US Federal Reserve’s tone in the recently released minutes boosted investor sentiment.
Titan was the top gainer of 4.94 per cent in Sensex stocks. Mahindra & Mahindra gained 4.69 per cent, Infosys 4.57 per cent, L&T 3.77 per cent and Rich Mahindra by 3.5 per cent.
Index heavyweights RIL rose 3.44 per cent and TCS rose 3.47 per cent. HCL Technologies, UltraTech Cement, Wipro and Bharti Airtel were also among the major gainers.
In contrast, Kotak Mahindra Bank, Sun Pharma, Dr Reddy’s and ITC were among the laggards.
Ajit Mishra, VP – Research, Religare Broking Ltd said, “The market ended a 3-week long consolidation phase and gained over 2%.”
“There has been some strength in the markets, citing a less aggressive tone of the US Fed in the recently released meeting minutes. On the domestic front, the onset of monsoon has further boosted sentiments,” he said.
Vinod Nair, Head of Research, Geojit Financial Services, said easing inflation concerns led US stocks to rise, which will be a key factor in deciding the tone of the upcoming Fed policy meeting. The easing of the long-running lockdown in China also helped lift the sentiment in Asian markets.
“The domestic market is witnessing a near-term trend turnaround, supported by valuation relaxations and positive trend in global counterparts,” Nair said.
“Nifty rose for the third consecutive session on May 30 following positive global cues due to China and a sharp rise on Wall Street on Friday. Some local factors helping the mood include early arrival of monsoon in Kerala , thereby increasing the expectation of a favorable impact on agricultural crops,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
In the broader market, BSE Midcap rose 2.28 per cent and Smallcap gained 2.23 per cent.
All BSE sectoral indices closed higher, with consumer durables rising 4.41 per cent, followed by realty (3.96 per cent), information technology (3.75 per cent), tech (3.53 per cent), consumer discretionary goods and services (2.85 per cent) and energy. (2.72 percent).
Elsewhere in Asia, markets in Seoul, Shanghai, Tokyo and Hong Kong settled with gains after China eased COVID-19 restrictions on business activity in Shanghai and Beijing.
European markets were also trading in the green during afternoon trading. America’s stock markets closed with great gains on Friday.
International oil benchmark Brent crude rose 0.43 per cent to $119.9 per barrel.
Foreign institutional investors continued their sell-off on Friday with shares worth Rs 1,943.10 crore, according to stock exchange data.
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