Sensex dips 474 pts from day's high, ends at 38,757; BSE SmallCap jumps 4%

Erasing their intra-day gains, the benchmark indices ended in the negative territory on Monday due to selling in blue-chip counters such as HDFC Bank, HDFC, Reliance Industries (RIL), ICICI Bank, and Bharti Airtel. The broader market, however, outperformed after market regulator Securities and Exchange Board of India (Sebi) tweaked the asset allocation norms for Multi-Cap Funds. 

According to the new norms, multi-cap funds must invest 25 per cent each in small, mid, and large-cap stocks. READ MORE

The S&P BSE Sensex today ended 98 points, or 0.25 per cent to settle at 38,757 levels with Bharti Airtel (down over 3 per cent) being the top loser and HCL Tech (up 10 per cent) the biggest gainer. During the day, the index hit a high of 39,230.16. 

NSE's Nifty ended at 11,440, down 24 points, or 0.21 per cent.  India VIX gained nearly 3.5 per cent to 21.42 levels. 

On the contrary, the S&P MidCap index gained 1.56 per cent to 14,888 levels while the S&P BSE SmallCap index ended 4 per cent higher at 15,145 levels. 

On the sectoral front, IT stocks continued to rally. The Nifty IT index climbed 4.5 per cent to 19,460 levels with all the 10 constituents advancing. HCL Tech ended 10 per cent higher at Rs 793.70 on the BSE after the company said it expects the revenue and the operating margin for the July-September quarter (Q2FY21) to be meaningfully better than the top end of the guidance it had provided in July 2020. READ MORE

Global markets

World stocks rallied on Monday on hopes for a coronavirus vaccine after AstraZeneca resumed its phase-3 trial, but caution lingered before a host of central bank meetings this week. 

European stock markets opened broadly higher and US stock futures rallied more than 1 per cent -- suggesting a strong start for Wall Street later on.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent to its highest in almost a week. Japan's Nikkei firmed 0.7 per cent after Chief Cabinet Secretary Yoshihide Suga won a landslide victory in a ruling party leadership election, paving the way for him to succeed Prime Minister Shinzo Abe.

In commodities, oil prices slipped amid concerns about a stalled global economic recovery and falling fuel demand, as Libya signalled it would end its months-long blockade and resume output, adding yet more supply to the market.

(With inputs from Reuters)