Sensex Jumps Over 550 Points Led By Gains Across Sectors

Sensex Jumps Over 550 Points Led By Gains Across Sectors

Stock Market Updates: ICICI Bank, Reliance Industries and HDFC were the biggest boosts to Sensex

Domestic stock markets registered sharp gains on Monday amid strong buying interest across sectors. The S&P BSE Sensex index rose 583.74 points - or 1.56 per cent - higher to 37,972.40 at the strongest level recorded during the session, and the broader NSE Nifty 50 benchmark climbed to as high as 11,227.45, up 177.2 points - or 1.60 per cent - from its previous close. Gains across most sectors, led by financial, energy, auto and metal stocks, pushed the markets higher. However, caution among investors in global markets capped the upside amid a spike in new COVID-19 infections, say analysts. (Track Sensex, Nifty)At 1:45 pm, the Sensex traded 531.29 points - or 1.42 per cent - higher at 37,919.95, while the Nifty was up 161.25 points - or 1.46 per cent - at 11,211.50.

IndusInd Bank, Bajaj Finance, ONGC, Axis Bank and Tata Motors, trading between 4.60 per cent and 8.38 per cent higher, were the top gainers in the Nifty basket of 50 shares.

On the other hand, Wipro, TCS, Infosys and HUL, down between 0.45 per cent and 1.04 per cent, were the only laggards in the benchmark index. 

ICICI Bank, Reliance Industries and HDFC were the biggest boosts to Sensex.

State-owned banking stocks jumped on hopes that the government may infuse some capital into the sector as early as the third quarter.

The Nifty Bank index - comprising stocks of 12 major lenders in the country - jumped as much as 3.28 per cent, as the Nifty PSU Bank barometer climbed up 3.46 per cent.

"Expectations of (government) stimulus is keeping the market positive," said AK Prabhakar, head of research at IDBI Capital. He also said the move by the West Bengal government to allow cinema halls to operate from October with restrictions lifted sentiment. 

Chinese stocks drove Asian markets higher on Monday, though sentiment was still cautious ahead of a US Presidential debate. MSCI's broadest index of Asia-Pacific shares outside Japan was last seen trading 0.54 per cent higher, but still within striking distance of a two-month low.

European share markets started Monday's session on a strong note, with the United Kingdom's FTSE 100 benchmark index up 1.47 per cent in early deals. 

Analysts expect gains across global markets to be short-lived as expectations for economic growth start to falter. Particularly worrying is a resurgence of COVID-19 cases in Europe, dousing earlier hopes that authorities might have started to exert some control on the outbreak and raising further strains on businesses already grappling with losses.