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Sensex, Nifty rise sharply for 2nd day on global cues, bank stocks

Bank Nifty gains 3.3%; benchmark indices have gained 4% in the past 2 sessions

Markets Sensex Nifty | stock market trading | financial stocks

Sundar Sethuraman  |  Thiruvananthapuram 

NSE, national stock exchange, nifty50
The Bank Nifty index gained 3.3 per cent on Monday; seven of the nine top Sensex contributors were financial stock

The benchmark indices rose sharply for the second session in a row on Monday, led by gains in financial stocks, which have a significant weighting in the indices. Experts said amid positive global cues, investors resorted to aggressive buying of banking and financial stocks, following a sharp fall in these stocks in the past month. Most global rallied sharply on Monday after positive Chinese industrial data boosted investor sentiment. The Sensex closed at 37,982, a gain of 593 points, or 1.6 per cent.

The Nifty rose 177 points, or 1.6 per cent, to end at 11,228. Both indices have gained nearly 4 per cent in the past two trading sessions. In the previous six trading sessions, however, they declined 7 per cent each, amid sharp outflows from foreign investors.

The Bank Nifty index gained 3.3 per cent on Monday; seven of the nine top Sensex contributors were These seven stocks made a 343-point contribution to the Sensex gain of 593 points.

State-owned banking stocks also rallied on reports that the finance ministry was planning capital infusion as early as the December quarter. Experts said investors were also pinning hopes on another round of stimulus measures by the Indian government, ahead of the festive season. The package, according to reports, might include an urban jobs scheme and infrastructure initiatives.

European gained the most in two weeks as company announcements pointed to improving business through the pandemic. More robust economic data from China also lifted investor sentiment. The profits at Chinese industrial companies grew for a fourth consecutive month in August, buoyed in part by a rebound in commodities prices and equipment manufacturing.


“Positive industrial profits data from China set aside concerns about increasing virus infections and their related impact. Indian were also banking on further stimulus and other measures by the government to boost the economy,” said Vinod Nair, head of research at Geojit Financial Services.

Experts said investors are hoping that the US lawmakers reach an agreement regarding a stimulus package.

“The rebound in global indices, combined with the hopes of possible stimulus, is helping markets recover. Further, Unlock 5.0 to bring relaxation to tourism, education, hotels, and the leisure segment, including cinema halls, would improve demand as well as investors’ sentiments,” said Ajit Mishra, vice-president (research), Religare Broking.

The market breadth was positive, with total advancing stocks at 1,925, and those declining at 758 on the BSE.

Indusind Bank was the best-performing stock and rose 7.9 per cent. Bajaj Finance rose 6.3 per cent, and Axis Bank 5.8 per cent.

All the BSE sectoral indices ended the sessions with gains. Banking and power stocks gained the most, and both their gauges rose 3.4 per cent.

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First Published: Tue, September 29 2020. 00:06 IST