Mumbai: Benchmark BSE Sensex rebounded by 329 points on Monday following heavy buying in IT and auto shares and a rally in global equity markets on hopes of a potential US Federal Reserve rate cut.
The 30-share BSE Sensex climbed 329.06 points or 0.40 per cent to settle at 81,635.91 with 20 of its constituents ending higher and 10 with losses. During the day, it jumped 492.21 points or 0.60 per cent to 81,799.06.
The 50-share NSE Nifty rose by 97.65 points or 0.39 per cent to 24,967.75.
Infosys was the biggest gainer among Sensex firms, rising by 3.03 per cent. Tata Consultancy Services rose by 2.85 per cent, HCL Tech by 2.6 per cent and Tech Mahindra by 1.32 per cent.
“A wave of optimism swept through the domestic market, driven by expectations of a Fed rate cut in September and a subsequent decline in the US 10-year yield. The IT index outperformed, buoyed by favourable global sentiment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Gains in Tata Motors, Sun Pharma, Maruti, Titan and Reliance Industries also added to the recovery. Bharat Electronics, Asian Paints, Bharti Airtel and ICICI Bank were among the laggards.
“Markets started the week on a positive note, gaining nearly half a per cent on the back of favourable global cues. Investor sentiment was buoyed by easing global rate concerns, with comments from the US Federal Reserve hinting at a possible rate cut next month, boosting risk appetite across emerging markets,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
The BSE Midcap gauge went up marginally by 0.10 per cent, while the Smallcap index ended flat, with a mild dip of 0.02 per cent.
Among BSE sectoral indices, BSE Focused IT jumped 2.35 per cent, followed by IT (2.34 per cent), tech (1.67 per cent), auto (0.51 per cent) and consumer durables (0.46 per cent).
Capital Goods, telecommunication, industrials and financial services were the laggards.
FIIs offloaded equities worth Rs 1,622.52 crore on Friday, according to exchange data. Global oil benchmark Brent crude traded 0.34 per cent up at $67.96 a barrel. On Friday, the Sensex tumbled 693.86 points or 0.85 per cent to 81,306.85. The Nifty dropped 213.65 points or 0.85 per cent to 24,870.10.