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Markets on longest winning streak in 10 months, rise seventh day on trot

Gain for 7th day; shrug off worries about rising yields, oil prices

Markets | BSE | Gross Domestic Product (GDP)

Sundar Sethuraman  |  Mumbai 

Markets on longest winning streak in 10 months, rise seventh day on trot
From now on, analysts said earnings would remain in focus

India’s benchmark indices gained for a seventh straight session on Monday even as global stocks were mostly flat after a relentless rise in oil and other commodity prices stoked inflation concerns.

This is the longest winning streak for the domestic in nearly 10 months. Between December 22 and January 5, the Sensex had gained for 10 straight trading sessions, adding 2,431 points, or 5.3 per cent.

On Monday, the 30-share index closed at a fresh all-time high of 61,766, up 460 points, or 0.75 per cent. Since October 8, the index has gained on all occasions, adding 1,706 points, or 4.4 per cent. The Nifty 50 index on Monday closed at 18,477. The broad-based index has surged 831 points, or 4.7 per cent, in the past seven sessions, finishing at new highs on six occasions.

The surge on Monday was aided by gains in index heavyweight Infosys, which rose 4.5 per cent and made a 255-point contribution to the Sensex’s gain. ICICI Bank rose 2.5 per cent and made a 112-point contribution. The overall market breadth was weak, with 12 of the 30 Sensex components ending with losses amid weak global cues.

prices hovered around seven-year highs, while several base metals hit fresh record highs, sparking concerns of high inflation. The 10-year US treasury yields rose to 1.6 per cent. Yields on the domestic 10-year government security also hardened by 6 basis points to 6.389 per cent.


China’s economic data also weighed on sentiment. The of the world’s second-largest economy grew 4.9 per cent in the September quarter, the weakest pace since the third quarter of 2020. The tepid Chinese macro numbers, fuel price rise, and global energy crisis have raised global economic recovery concerns.

Experts said investors globally continued to worry that energy shortages and supply-chain disruptions would drive up living costs in most economies at a time when central banks were inching closer to tapering.

Analysts said the gains in the Indian were due to catch-up buying as global equities gained on Friday when the Indian were shut for Dussehra.

The volatility index, India VIX, was up 9 per cent.

"Good quarterly corporate results have kept investors’ interest sanguine. The rise in global commodity prices continued, which supported metals stocks while raising fears of an adverse impact on inflation and interest rates. In this environment of high bullishness, one needs to stay grounded on various risks, including valuations. We would suggest investors remain sector and stock-specific," said Siddhartha Khemka, head- retail research, Motilal Oswal Financial Services.

From now on, analysts said earnings would remain in focus.

"We have a long list of index majors announcing their results this week. And, participants will be closely eyeing the management commentaries for the future growth outlook. Apart from this, global cues would also be on investors' radars. We reiterate our bullish view on the market. We suggest using intermediate dips to add quality stocks," Ajit Mishra, VP - research, Religare Broking.

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First Published: Mon, October 18 2021. 18:50 IST