Hopes of a faster economic rebound, healthy auto sales, GST collection, and PMI data lifted India’s equity markets on Monday.
Besides, IMD’s latest forecasts, which showed that the 2021 monsoon appears set to exceed the long period average, supported the market’s upmove.
The equity markets had a gap-up opening due to positive global cues and investors’ optimism over healthy Q1FY21 results.
Sector-wise, realty, oil and gas, auto, and IT indices gained the most.
Consequently, the BSE Sensex ended at 52,950.63 points, higher by 363.79 points or 0.69 percent from its previous close.
The Nifty50 on the National Stock Exchange closed the day’s trade at 15,885.15, higher by 122.10 points or 0.77 percent from its previous close.
“Nifty opened higher, remained in a range before seeing some see-saw movement… Volumes however did not support this up-move as the gains were more led by a reluctance to sell rather than aggressive buying,” said Deepak Jasani – Head of Retail Research at HDFC Securities.
“Asian stocks rallied Monday as some of the concerns over China’s regulatory crackdown eased and progress on a US infrastructure spending plan aided sentiment. European equities kicked off August with a bang, rising to a new record on earnings updates.”
According to Vinod Nair, Head of Research at Geojit Financial Services: “Tracking global sentiments, vibrant domestic sectors like realty, auto, IT and chemicals provided an edge to Indian equities. Recovery is seen in July auto sales and an improved outlook for real estate due to a surge in property registrations helped these sectors to trade higher.”
“$1 trillion infrastructure spending package in the US provided better prospects to the core economy, aiding global markets to start the month on a strong footing.”