1 hr ago
Sensex and Nifty Open Higher as PSU Banks Lead Rally
Indian stocks started Monday higher after falling for eight weeks.
The Sensex rose by more than 400 points at the opening, and the Nifty gained more than 100 points.
Positive trading in Asian markets and softer US jobs data helped investors feel more hopeful.
Shares of public-sector banks rose strongly, along with some media and metal stocks.
Experts said lower share prices and strong car sales might help the market recover.
But expensive oil, high US bond yields and overseas investors selling shares remain concerns.
Investors were also waiting for a possible interest-rate increase from India's central bank on Wednesday.
Oil prices edged lower, which gave the market some relief.
The Sensex opened at 72,340.95, up more than 400 points, while the Nifty opened at 22,532.40, up over 100 points.
Positive cues from Asian markets and softer US jobs data supported sentiment after eight weeks of losses.
PSU bank, media and metal stocks led sector gains, while IT, auto and pharmaceutical indices were flat.
Experts said lower valuations and strong September auto sales could support a recovery, but cited high oil prices, US bond yields and foreign selling as risks.
Investors were watching for an expected 25-basis-point RBI rate increase on Wednesday; Brent crude was nearly 1% lower at $101.27 a barrel.
- Who
- Indian stock markets and investors, including foreign and domestic institutional investors.
- What
- The Sensex and Nifty opened higher, with PSU bank stocks leading gains.
- Where
- Mumbai, India.
- When
- Monday; the article does not specify the date.
- Why
- Positive Asian market cues and softer US jobs data supported sentiment; investors were also assessing oil prices and the expected RBI rate decision.
Reasons for recovery
Risks to the outlook
Market prospects
Reasons for recovery
Experts said the correction had made large-cap valuations more attractive and could create room for a recovery; strong September auto sales indicated resilient domestic demand.
Risks to the outlook
Expensive crude oil, elevated US bond yields and continued foreign investor selling were cited as pressures on the market outlook.
Expected rate increase
Reasons for recovery
Experts said investors had largely factored in an expected 25-basis-point RBI rate increase, and higher rates on floating-rate loans could support bank lending margins.
Risks to the outlook
The article does not give a separate opposing assessment of the expected rate increase.
Key facts
- Sensex opening
- 72,340.95, up more than 400 points or 0.6%.
- Nifty opening
- 22,532.40, up more than 100 points or 0.49%.
- Leading sectors
- PSU bank, media and metal indices gained up to 1%.
- Expected RBI decision
- Experts expected a 25-basis-point policy rate increase on Wednesday.
- Foreign institutional investors
- Sold shares worth Rs 9,484 crore in the previous trading session.
- Domestic institutional investors
- Bought equities worth Rs 10,041 crore in the previous trading session.
- Brent crude
- Traded nearly 1% lower at USD 101.27 a barrel.
Sources
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