Indian markets soared on Monday – the Bombay Stock Exchange Sensex closing 198.76 points up at 28,439.28 and the National Stock Exchange Nifty ending 60.10 points higher to cross the 8,800-point mark. Both indices opened on a strong note as investor sentiment was boosted by strong global cues and the possibility of a rate cut by the Reserve Bank of India after its policy meeting on Wednesday.
Sun Pharma, ICICI Bank, Adani Ports, Axis Bank and Hero MotoCorp were the top gainers of the day’s trade. While the State Bank of India made improvements in the morning session, its shares ended 0.13% lower. ONGC, Cipla and Dr Reddy all ended in red on the BSE index. The BSE smallcap and midcap indices ended 1.10% and 0.88% higher.
In the NSE bourse, Ambuja Cement, ACC, Sun Pharma and ICICI Bank were the top gainers, while Dr Reddy, Cipla and Hindalco Industries were the top losers. This is the first time in four months that the country’s leading stock exchange crossed the 8,800 mark.
Analysts advised investors to book profits – selling their shares to realise gains – at regular levels, adding that it was possible for markets to rise further in the coming days, Business Standard reported. IIFL Head of Research Amar Ambani said the midcap segment was attracting “investments from domestic and foreign players”. “In the midcap segment, one now needs to be stock specific,” Ambani said.
Meanwhile, strong Wall Street performances, which followed United States President Donald Trump’s move to ease regulations on the financial industry, boosted Asian markets, AP reported. While Japan’s Nikkei 225 rose by 0.3%, South Korea’s Kospi gained 0.2%. The Shanghai Composite and Hong Kong’s Hang Seng also rose by 0.5% and 1%.
On Friday, Trump had directed the treasury secretary to examine potential changes to the Dodd-Frank law, which was passed after the 2008 global financial crisis.