Sensex Surges Nearly 300 Points As Bank, Metal Stocks Rebound

Sensex Surges Nearly 300 Points As Bank, Metal Stocks Rebound

The BSE Sensex and Nifty rebounded sharply on Monday as metal and heavy-weight banking stocks witnessed buying. A weak U.S. inflation data, which dampened prospects of a rate hike this year, lifted sentiments leading to buying in most of the Asian shares. The Sensex surged as much as 287 points to an intraday high of 31,481.11 while the NSE benchmark Nifty touched 9,807 at day’s high. Other than banking and metal, realty, pharma and FMCG shares also witnessed buying.

Among Nifty stocks, Cipla was the top gainer, up 5.4 per cent followed by Vedanta, Tata Steel, Adani Ports and Hindalco Industries, which rose between 3.2-4.5 per cent. The Nifty Metal sub-index was up 3.2 per cent.

Banks were among the top gainers, with the Nifty Bank index up 0.90 per cent, after losing 3.4 percent last week.

Housing Development Financial Corp and HDFC Bank advanced 2.6 percent and 1.1 percent, respectively, and were among the leading gainers.

Meanwhile, Asian stocks bounced back after three losing sessions, although broader sentiment was tempered by continued tensions between the United States and North Korea. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 percent.

“The strength and recovery in global markets did lend some support to our indices,” said Pritesh Mehta, head of technical research, IIFL Wealth.

“But thereafter, the reason has been the strength in Bank Nifty, HDFC, and exhaustion of selling pressure in the markets.”

As of 12.05 pm, the broader NSE Nifty was up 0.92 per cent at 9,800.40, after falling 3.5 per cent last week – its biggest weekly decline in 1-1/2 years.

The benchmark BSE Sensex rose 0.87 per cent to 31,485.36, after falling nearly 3.5 percent last week.

Real estate developer DLF Ltd surged as much as 13.7 per cent after saying on Saturday it was in the final stages of talks for a transaction involving its rental unit arm.

DLF had previously said it was in talks with Singapore sovereign wealth fund GIC to sell a 40 pct stake in its property rental unit.

Meanwhile, Bharat Petroleum Corp was the top loser in Nifty, down 2.21 per cent, after posting disappointing June-quarter results on Friday.

Markets will be closed on Tuesday on account of a public holiday.