Gains in financial and IT stocks led strong buying interest across sectors
Domestic stock markets jumped more than 1 per cent on Monday tracking gains in global markets. The S&P BSE Sensex index climbed up 1.87 per cent - or 640.56 points - to touch 34,927.80 at the strongest level of the day, having started the session up 553.93 points at 34,841.17. The broader NSE Nifty 50 benchmark rose to as high as 10,328.50, after opening stronger at 10,326.75 compared to its previous close of 10,142.15. Gains in financial and IT stocks led strong buying interest across sectors.
Both benchmark indices gave up some of those gains in early afternoon deals. At 12:25 pm, the Sensex traded 496.04 points - or 1.45 per cent - higher at 34,783.28 while the Nifty was up 150.30 points - or 1.48 per cent - at 10,292.45.
IndusInd Bank, Axis Bank, GAIL, Bharat Petroleum and Bajaj Finance, trading between 5.89 per cent and 8.89 per cent higher, were among the 39 percentage gainers in the 50-scrip Nifty basket.
On the other hand, Zee Entertainment, Shree Cement, Cipla, Eicher Motors and Nestle, trading between 1.17 per cent and 1.55 per cent lowere, were the top Nifty losers.
Infosys, Axis Bank, Tata Consultancy Services (TCS) and ICICI Bank were the biggest contributors to the gain in Sensex, together accounted for a rise of more than 200 points in the index.
Reliance Industries shares climbed more than 2 per cent to a new record high, a day after the conglomerate said Abu Dhabi Investment Authority will buy a 1.16 per cent stake in its digital unit, Jio Platforms, for Rs 5,684 crore.
"Opening up of the economy and the way Indian corporates are raising money have boosted the markets. Investors were earlier frightened about the impact of the lockdown on the economy. Now, things are not as bad as they looked," said Saurabh Jain, assistant vice president of research at SMC Global Securities.
The government is relaxing its months-long lockdown with the reopening of malls, restaurants and places of worship starting Monday despite a huge spike in coronavirus cases.
Equities elsewhere in Asia as well as US stock futures advanced on Monday amid hopes of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.
MSCI's broadest index of Asia Pacific shares outside Japan was last seen trading 0.43 per cent higher, while Japan's Nikkei 225 benchmark was up 0.93 per cent. China's Shanghai Composite, Hong Kong's Hang Seng and South Korea's KOSPI indices were up 0.45 per cent, 0.50 per cent and 0.16 per cent at the time.
The E-Mini S&P 500 futures rose 0.30 per cent in early Asian trade, indicating a positive opening for the US markets on Monday.
US non-farm payrolls rose by 2.509 million jobs last month - in contrast with consensus estimates of a fall of 8 million jobs after a record plunge of 20.687 million in April.
The Labor Department's closely watched employment report also showed the jobless rate falling to 13.3 per cent last month from 14.7 per cent in April, a post-World War Two high. Economists had forecast the rate jumping to 19.8 per cent.
