Indian benchmark equity indices closed higher for the fourth consecutive session at new record highs in a highly volatile market on Monday, led by energy and financial stocks.

The 30-share BSE benchmark Sensex surged 66 points or 0.09% to settle at 73,872. The broader NSE Nifty gained 27 points or 0.12% to end at 22,405.

From the Sensex pack, NTPC, Power Grid Corporation, Reliance Industries, and Bajaj Finserc were the top gainers, rising 1-4%. Axis Bank, Tech Mahindra, and ICICI Bank also closed in the green, while JSW Steel, M&M, Tata Steel, and UltraTech Cement closed with cuts.

Shares of JSW Steel and Tata Steel fell up to 2.5% after Hong Kong-based brokerage CLSA downgraded the stocks on stretched valuations and weaker industry spreads as their nemesis.

Godrej Properties closed over 2% higher after the company announced it has entered definitive agreements to develop a township project on a 62-acre land parcel in North Bengaluru.

Sector-wise, Nifty Oil & Gas closed 1.9% higher, led by Oil India, Petronet LNG, and GAIL. Nifty Bank, financial services, pharma, and realty also closed with gains, while Nifty FMCG, auto, media, IT, and metal closed in the red.The market breadth was skewed in favour of the bears. About 2,526 stocks gained, 1,426 declined, and 133 remained unchanged on the BSE.

Expert View

“The market traded in a range-bound manner due to weak global cues, while investors turned stock-specific due to the prevailing caution on broader indices. Further, the tepid consumption data influenced investors to refrain from FMCG and discretionary stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.

“The global sentiment is likely to be cautious ahead of FED chair testimony and ECB policy later this week. Since inflation is above the target range, the FED is expected to keep its hawkish stance on interest rates and will be watchful of unemployment and nonfarm payroll data for more cues,” Nair said.

Aditya Gaggar, director of Progressive Shares, said, “On the daily chart, the index has made a DOJI candlestick pattern at the record level but considering a strong underlying trend, we believe that the ongoing momentum will extend to 22,600 while on the downside a level of 22,250 will serve as a major support.”

Global Markets

World shares tipped higher Monday as a mixed European open could not dispel enthusiasm over record heights reached by Japan’s Nikkei and as investors braced for a week packed with central bank events and major data that could refine market wagers.

Europe’s broadest index of stocks and the German DAX steadied while the French and UK markets slipped 0.2% and 0.3%, respectively.

Chinese blue chips were largely flat awaiting some concrete news on any measures. Japan’s Nikkei climbed 0.5% to break 40,000 for the first time, having risen for five weeks straight.

Oil Impact

Oil prices fell slightly on Monday amid the widely expected extension of voluntary output cuts by the OPEC+ producer group on Sunday. Brent futures climbed 4 cents to $83.48 a barrel. U.S. West Texas Intermediate (WTI) fell 16 cents to $79.8 a barrel.

Rupee Closes Flat

The Indian rupee closed little changed on Monday as dollar demand from state-run banks offset positive cues from an uptick in most Asian currencies.

The rupee ended at 82.89 against the US dollar, barely changing from its previous close of 82.90. The currency moved in a tight band between 82.86 and 82.9125 through the day’s session.

(With inputs from agencies)


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