Sensex, Nifty march ahead; financial, auto stocks lead

Mumbai: Equity benchmarks reversed early losses to close higher on Monday, led by gains in financial and auto counters as government assurances about tackling economic turmoil seemed to have temporarily calmed investor jitters.

The BSE gauge Sensex ended 163.68 points, or 0.44 per cent, higher at 37,145.45; and the NSE Nifty settled 56.85 points, or 0.52 per cent, up at 11,003.05.

Positive global developments also helped in boosting risk appetite of investors in the Indian stock market.

Analysts are of the views that equities are trading positively in anticipation of more policy initiatives from the government to arrest demand slowdown in various sectors, including auto.

Of the 30-constituent Sensex, 20 stocks in the green and 10 in the red.

Top gainers in the Sensex pack included Yes Bank, Maruti, L&T, Kotak Bank, Bharti Airtel, Bajaj Finance, SBI, ONGC, HDFC and Hero MotoCorp, rising up to 4.47 per cent

On the other hand, HCL Tech, Infosys, TechM, Bajaj Auto and TCS fell up to 1.50 per cent.

Sectorally, BSE telecom, capital goods, industrials, consumer durables, bankex, FMCG and finance indices rose up to 1.75 per cent.

While, BSE IT and teck indices slipped up to 0.81 per cent.

Broader BSE midcap and smallcap indices ended up to 0.97 per cent higher.

The BSE Sensex, after opening on a negative note, rebounded 460 points from the day's low of 36,784.47. Similarly, the NSE barometer Nifty touched a peak of 11,028.85 and low of 10,889.80 during the day.

"The rebound in the equity market was broad-based with two stocks advancing for every decline and the most under-performing sectors/stocks bounced back sharply in the trade today. Though the market internals have improved substantially due to positive global cues and hopes of further measures by the government to boost economy, the big test would around the top end of the recent range at around 11,200-11,250 at Nifty...," Gaurav Dua, Senior VP, Head - Capital Market Strategy, Sharekhan by BNP Paribas, said.

Last week, Road Transport Minister Nitin Gadkari assured the crisis-hit automobile sector of all possible support from the government, including taking up the demand of GST reduction with Finance Minister Nirmala Sitharaman.

The government also announced having constituted a high-level task force to identify infrastructure projects for Rs 100 lakh crore investment by 2024-25 as India aims to become a USD 5 trillion economy.

Last week, Finance Minister Nirmala Sitharaman, said the government will unveil further measures to revive economic growth that has slowed to a six-year low.

Meanwhile, investors await consumer price index-based inflation data and industrial production data, due on 12 September.

Elsewhere in Asia, Shanghai Composite Index, Nikkei and Kospi settled in the green, while Hang Seng ended in the red.

Exchanges in Europe were also trading on a mixed note in their respective early sessions.

The Indian rupee appreciated by 1 paisa to close at 71.71 per US dollar.

Meanwhile, foreign investors sold equities worth Rs 188.08 crore on a net basis, exchange data showed on Monday.

Global oil benchmark Brent crude was trading 0.80 per cent higher at USD 62.03 per barrel.