Sensex, Nifty extend gain on Monday; here’s what is driving stock markets higher today

The fear gauge of Indian stock markets dropped further on Monday morning. India VIX slipped 2.79% to sit at 25 points.

Domestic benchmark indices opened in the green to kickstart the initial trading session of the week. S&P BSE Sensex opened 270 points higher while the NSE Nifty 50 gained to sit above the 10,700 mark. “The markets have opened with a bang and the much spoken about target of 10700 has been achieved! I would like to pause at this situation and watch the markets for a couple of trading sessions in order to decide on the next level the markets could achieve. Traders should book profits at current levels and update stops to 10500-10550 levels as that is the next support level for the market,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Markets at levels last seen in March: With the surge in Sensex and Nifty on Monday morning, domestic markets are now at levels that they previously saw in the initial weeks of March. Nifty 50 saw the 10,700 mark on March 6 and March 9 earlier this year. Domestic benchmark indices have now jumped 41% since their March lows.

Financials open strong: Among the top gainers on the S&P BSE Sensex on Monday morning were HDFC Bank, IndusInd Bank, and Bajaj Finance. Nifty Private Bank and Nifty Bank were the top sectoral gainers.

India VIX drops further: The fear gauge of Indian stock markets dropped further on Monday morning. India VIX slipped 2.79% to sit at 25 points. The volatility index has been receding in the last couple of sessions hinting at easing volatility in the markets that was up at 86 points in March.

Reliance hits fresh 52-week high: Mukesh Ambani’s Reliance Industries Ltd has gained to hit a fresh 52-week high on Monday. The stock was trading at Rs 1,826 per share up from its previous 52-week high of Rs 1,804 apiece. The oil-to-telecom giant added yet another investors to its digital telecommunications arm Jio Platforms last week.

Broader markets gain: Broader market indices were all in the green following the lead of benchmarks. Nifty Next 50 was up 0.66% while Nifty 100 jumped 1.03% followed by Nifty 200 and Nifty 500 just a tad bit behind. Small-cap and Midcap indices were also seen moving up, all gaining more than 0.70% each.