Sensex, Nifty Advance On Gains In IT, Financial Shares, Global Cues

Benchmark BSE Sensex rose by 319 points on Monday on gains in IT and financial stocks after positive quarterly results amid supportive global cues.

Snapping its two-day sliding streak, the 30-share BSE barometer rose by 319.90 or 0.53 per cent to close at 60,941.67.

The index opened higher and gained more than 400 points to scale the 61,000 level. It touched a high of 61,113.27 and a low of 60,761.88 in the day.

The broader NSE Nifty gained 90.90 points or 0.5 per cent to settle at 18,118.55 as 32 of its stocks advanced while 18 declined. The index moved between 18,162.60 and 18,063.45 during the day.

Among Sensex stocks, Hindustan Unilever rose the most by 1.89 per cent. Sun Pharma, Tata Motors, Infosys, TCS, Tech Mahindra, HCL Tech, SBI, Kotak Bank, HDFC twins, and Nestle were among major gainers.

ICICI Bank closed flat after the second largest private sector lender on Saturday reported a 34.5 per cent jump in its consolidated net profit at Rs 8,792 crore in the December 2022 quarter, helped by an overall healthy performance.

Kotak Mahindra Bank spurted 1.13 per cent after posting a 31 per cent growth in Q3 net income at Rs 2,792 crore.

On the other hand, UltraTech Cement was the biggest loser, falling by 4.62 per cent. NTPC, Tata Steel, L&T, Reliance Industries and Titan were also among the laggards.

Billionaire Mukesh Ambani's Reliance Industries Ltd had on Friday reported a 15 per cent drop in net profit for the December 2022 quarter as higher finance costs, the new windfall profit tax and depreciation neutralised strong operating performance.

"Market breadth tilted in favour of bulls lifted by financial stocks, amid positive cues from global peers. Strong corporate earnings reported by banks boosted appetite for financial stocks. Positive global markets owing to possibility of a less aggressive rate hike, further added colour," said Vinod Nair, Head of Research at Geojit Financial Services.

The broader indices traded mixed as the BSE Midcap rose by 0.44 per cent to 25,114.15 while the small-cap declined by 0.30 per cent to 28,544.40.

Among sector indices, BSE IT rose by 1.65 per cent, BSE Teck by 1.48 per cent, Bankex by 0.76 per cent, FMCG by 0.73 per cent, Auto by 0.64 per cent, and Financial Services by 0.57 per cent.

On the other hand, BSE Commodities fell 1.14 per cent and realty by 0.72 per cent. BSE Power, industrials, utilities and services also declined.

Upbeat global cues combined with favourable earnings announcements triggered a gap-up start which further strengthened with renewed buying in the IT majors, said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

However, profit taking in energy, banking and cement heavyweights trimmed the gains as the day progressed, he added.

Shares in Europe and Asia also advanced on Monday following a rally in US markets on Friday.

Tokyo's Nikkei 225 index added 1.3 per cent despite concerns that Japan is facing a severe financial situation after spending heavily to counter the pandemic and other troubles. Most Asian markets were closed for Lunar New Year holidays.

In Europe, Germany's DAX edged 0.1 per cent higher, the CAC 40 in Paris gained 0.1 per cent and Britain's FTSE 100 added 0.2 per cent.

On Friday, the S&P 500 rose 1.9 per cent, the Dow Jones Industrial Average gained 1 per cent and the Nasdaq spurted 2.7 per cent.

Brent crude, the price benchmark for international trading, declined 17 cents to USD 87.46 per barrel.

The rupee fell 21 paise to close as 81.38 (provisional) against the US dollar on Monday amid rise in crude prices.

Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,002.25 crore, according to exchange data.