Global cues, foreign funds lift equities; banking stocks rise

MUMBAI: India's benchmark equity indices ended higher for the sixth consecutive session on Monday, as robust global cues and a fresh influx of foreign funds buoyed investor sentiments.

Accordingly, the market had a gap-up opening but remained sideways throughout the day. On Monday, FIIs were net buyers to the tune of Rs 1,876.60 crore in BSE, NSE, and MSEI in the capital market segment.

Globally, most Asian shares rose echoing the rally on Wall Street last week, with Nikkei momentarily reaching three-decade highs on growing optimism over the global economy. Similarly, European stocks traded higher with markets tracking positive sentiment in Asia and the US.

Among sectors, banks, auto, and metals did well, while PSU banks and the FMCG index underperformed.

Consequently, the S&P BSE Sensex closed at 51,348.77, higher by 617.14 points, or 1.22 percent, from its previous close. Similarly, the NSE Nifty50 also made healthy gains. It ended the day's trade at 15,115.80, higher by 191.55 points, or 1.287 percent, from its previous close.

"Nifty marches ahead day after day with minimal intraday correction. Going by volume numbers, it seems that FPIs' interest dipped on Monday. The ongoing results season is leading to rotational buying across stocks and sectors which incidentally pulls the Nifty up. On a channel line basis, the next resistance for the Nifty is around 15,200 while the support is at 14,870-14,914," said Deepak Jasani, Head of Retail Research at HDFC Securities.

According to Vinod Nair, Head of Research, Geojit Financial Services: "Strong global cues supported the domestic rally. PSU banks, which were on a bull run, paused on Monday with some correction noticeable in FMCGs. The overall market is maintaining its buoyancy with a rally in all sectors, especially auto, IT, and metals. Improved domestic outlook is encouraging sustained FPI inflows." (IANS)

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