Sensex, Nifty gain most in almost a month

Defy weak regional cues; only third day of gain in last 15 sessions

The Indian markets on Monday rallied the most in nearly a month, despite weakness in other Asian markets after the terrorist attacks in France. The benchmark BSE Sensex and National Stock Exchange’s Nifty gained nearly 0.6 per cent each. However, the MSCI Asia Pacific Index ended one per cent lower. Reports that the government is keen on sorting issues for a smooth roll-out of the Goods & Services Tax Bill, a key legislation eyed by the markets, buoyed stocks.

The 30-share Sensex ended 149.6 points, or 0.58 per cent, higher at 25,760. The broad-based Nifty ended at 7,806.6, up 44 points, or 0.6 per cent, most since October 16. Monday’s gain in the Sensex and Nifty was, however, only the third in 15 trading sessions, during which these benchmarks have fallen a little over six per cent.

“Equity benchmarks got a breather and gained over half a per cent despite negative global cues. Prime minister Narendra Modi’s statement that FDI (foreign direct investment) has increased 40 percent since last year boosted sentiments and that further improved with contraction in the the Wholesale Price Index figure,” said Jayant Manglik, president, retail distribution, Religare Securities.

Foreign institutional investors sold shares worth Rs 1,000 crore on Monday, extending this month’s selling tally to Rs 3,000 crore. Domestic institutions bought shares worth Rs 660 crore.  

Among major gainers was GAIL India, which gained 4.6 per cent after its Mahangar Gas, in which it has nearly 50 per cent stake, filed for an Initial Public Offering of shares. Dr Reddy’s Laboratories rose 3.4 per cent, after dropping 20 per cent in two weeks. Tata Steel and Vedanta also gained three per cent each, recovering slightly after a recent pounding.

“The market rebounded from an oversold territory, as investors used the panic to add to their portfolios. There’s speculation that moderating inflation will enable the Reserve Bank of India (RBI) to lower rates next quarter,” Jitendra Panda, chief executive at Peerless Securities told Bloomberg.

Wholesale Price Index fell for a 12th straight month, data released on Monday showed. The RBI is scheduled to meet on December 1 to review interest rates.