Indian equity market extended gains for the seventh consecutive session on Monday, ending marginally up from Friday’s close, tracking optimism in the global market on progress of trade talks between the US and China. Strong financial performance in the September quarter also buoyed the sentiment.
The benchmark index BSE Sensex rose 136.93 points or 0.34% to a record closing high of 40,301.96. The Nifty 50 index inched up 50.70 points or 0.43% to close at 11,941.30. Midcap and Smallcap index rose marginally.
Metal and mining stocks supported the bull run, with Nifty 50 companies--JSW Steel Ltd, Tata Steel Ltd, Vedanta Ltd and Hindalco Industries Ltd—being among the top gainers today. JSW Steel climbed up nearly 6% intraday, Tata Steel and Vedanta rose 4.5% and 3.5%, respectively.
Investor sentiment was boosted after the US commerce secretary Wilbur Ross on Sunday said he was “quite optimistic" that challenges related to the first phase of the US-China trade talks will be resolved soon and the leaders of the two countries are scheduled to meet later this month.
Overall market breadth was positive. On the BSE, 1,429 shares rose, 1,151 shares fell and 175 shares were unchanged. In the Nifty 50 index, 27 stocks moved higher while 23 stocks declined.
Among the Asian markets, Hong Kong’s Hang Seng Index gained 1.65%, Korea’s Kospi Index rose 1.43%, Taiwan’s Taiex Index was up 1.38%.
Among Indian companies, shares of Infosys surged 6% intraday after the IT major said there is no evidence that supports whistleblower complaints alleging the company’s top management, mainly chief executive Salil Parekh and chief financial officer Nilanjan Roy, were involved in unethical accounting practices. The stock rose 3.05% to close at Rs709 today.
The IT sectoral index followed suit, with shares of HCL Infosystems Ltd gaining 10.29%, Zensar Technologies rising 5.9% and NIIT Technology trading up 1.75%.
Shares of Yes Bank advanced as much as 7.13% intraday, but ended largely flat at Rs66.10, after the bank’s chief Ravneet Gill told news channel CNBC TV18 that the bank is hopeful of receiving a binding bid in a few days to raise $1.2 billion equity capital by the end of December.
Yes Bank had plunged more than 10% in early deals today as the private lender, after market hours on Friday, had reported a net loss of Rs600 crore for July-September due to adjustment of Rs709 crore in one-time deferred tax assets.
Housing Development Finance Corporation (HDFC) Ltd gained 2.48% to close at Rs2,181.35 after it reported an 80.38% jump in consolidated net profit to Rs10,388.61 crore on the back of increase in total income in the quarter-ended September of the current fiscal.