Indian benchmark stock indices, the Sensex and Nifty, continued their upward trajectory in early trade on Monday, building on the previous day’s rally. This positive momentum was driven by an optimistic trend in global markets. The 30-share BSE Sensex surged by 367.98 points to reach 62,915.09, while the NSE Nifty advanced by 75.35 points, reaching 18,609.50.
Among the gainers in the Sensex pack were Axis Bank, Mahindra & Mahindra, ICICI Bank, Power Grid, Tata Motors, Sun Pharma, Larsen & Toubro, ITC, UltraTech Cement, and NTPC. However, Tech Mahindra, Asian Paints, Hindustan Unilever, and IndusInd Bank were among the laggards.
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, were trading positively, contributing to the overall optimistic sentiment. In the US, stock markets ended significantly higher on Friday. The Dow Jones Industrial Average closed up by 701 points as investors reacted positively to the May jobs report, which indicated a surprisingly strong labor market despite the Federal Reserve’s tightening of monetary policy.
US President Joe Biden signed legislation over the weekend to raise the nation’s debt ceiling, avoiding a potential default on the federal government’s debt. This news further buoyed market confidence.
Global oil benchmark Brent crude also saw a rise, jumping by 1.17% to reach USD 77.02 per barrel.
In terms of foreign investment, Foreign Institutional Investors (FIIs) offloaded equities worth INR 658.88 crore on Friday, according to exchange data.
Overall, the positive sentiment in both domestic and global markets, coupled with the successful avoidance of a debt-ceiling crisis in the US, contributed to the upward movement of Indian benchmark stock indices.