Positive opening in EU markets along with recovery in some Asian indices showed that fears of an escalation of a trade war have subsided
Mumbai : Indian stock market reversed its two-session downtrend on Monday on the back of a pick-up in banking shares and support from strengthening of rupee against the dollar amid easing fears on global trade war.
The benchmark Sensex rose by 470 points and the NSE Nifty by 133 points.
Likely value buying by foreign institutional investors and short covering ahead of the expiry of the March derivatives contracts on Wednesday also supported the gains, dealers said. Positive opening in European markets along with recovery in some Asian indices showed that fears of an escalation of a global trade war have subsided. The concern over a global trade war eased a little after reports said the US has decided to exempt South Korea from steel tariffs.
Sensex ended at 33066.41 points, up by 469.87 points or 1.4 per cent while the Nifty ended at 10130.65 points, up by 132.60 points or 1.3 per cent from its previous close. “Market witnessed strong gains after a flat opening following positive cues from European and Asian peers signalling some ease in trade war…Short covering in banking sector from the oversold level supported the gains,” said Vinod Nair, head of research at Geojit Financial Services. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1,628.19 crore, while domestic institutional investors (DIIs) sold equities to the tune of Rs 935.41 crore last Friday, provisional data showed. The Nifty PSU Bank index was up 5 per cent and was the top performer on the Nifty 50, while the Nifty Bank index ended up 2.4 per cent. Stocks of information technology and energy companies were among the biggest laggards on Monday.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)