The S&P BSE Sensex and NSE Nifty 50 indexes gained for the second session in a row on Monday led by gains in banking shares after the country’s largest private lender HDFC Bank announced that its net profit rose 18 per cent to Rs 7,513 crore in September quarter, raising hopes of similar quarterly earnings from other banks. The benchmarks had staged a gap-up opening and extended gains in late-morning deals, wherein the Sensex rose as much as 536 points and Nifty 50 index touched an intraday high of 11,898.25. Investor sentiment was also lifted by hopes of a US stimulus package before the presidential election and expectations of a COVID-19 vaccine by year-end.
The Sensex ended 449 points or 1.12 per cent higher at 40,432 and Nifty 50 index advanced 111 points or 0.94 per cent to close at 11,873.
The Sensex and Nifty have been on an upward spiral for the last 12 trading session, barring one session.
Seven of 11 sector gauges compiled by the National Stock Exchange ended higher, led by the Nifty PSU Bank index’s over 4 per cent gain. Nifty Bank, Private Bank, Financial Services, FMCG and Realty indices also rose 1-3 per cent each.
On the other hand, auto, information technology and pharma shares faced selling pressure.
Mid- and small-cap shares also witnessed buying interest, as the Nifty Midcap 100 index and Nifty Smallcap 100 indexes rose 0.8 per cent each.
“Bank stocks are steadily gaining momentum after HDFC Bank’s results and markets think that other private sector banks could follow suit,” Saurabh Jain, assistant vice president at SMC Global Securities told Reuters.
Among the individual shares, Jet Airways was locked in a 5 per cent upper circuit at Rs 42.20 on the National Stock Exchange after the company on Saturday informed exchanges that its creditors agreed to sell the carrier under a multi-million dollar resolution plan. Jet Airways shares were locked in a 5 per cent upper circuit for eighth session in a row. The stock has rallied 47 per cent in the last eight sessions.
Hyderabad-based Dr Reddy’s Laboratories shares gained nearly 3 per cent on Monday after the drug maker received a regulatory nod to conduct clinical trials for Russia’s Sputnik V COVID-19 vaccine in India.
ICICI Bank was top Nifty gainer, the stock rose 5 per cent to close at Rs 416. Nestle India, GAIL India, Axis Bank State Bank of India, Indian Oil, HDFC, Coal India and ONGC also rose 3.35-4.53 per cent each.
On the flip side, Divi’s Labs, Eicher Motors, Hero MotoCorp, Cipla, Bajaj Auto, TCS, Mahindra & Mahindra, Bharti Airtel and Adani Ports were among the losers.
The overall market breadth was positive, as 1,492 shares ended higher while 1,168 closed lower on the BSE.