Mumbai: A PSU bank rally helped the Sensex and Nifty close modestly higher on Monday after a volatile session. Selective buying in pharma stocks also outweighed declines in IT and metal shares. The BSE Sensex closed at 81,106.65, up 107.25 points or 0.13 per cent. Meanwhile, the NSE Nifty 50 ended at 25,044.65, a gain of 58.25 points or 0.23 per cent.
For much of the day, the benchmarks moved in a narrow range. Investors booked profits after the previous week’s sharp rally. Later, buying in banking shares lifted the indices off their lows. The Sensex touched an intraday high of 81,339.41, up roughly 340 points, before giving up most of the gain. Still, the Nifty stayed above the 25,000 mark.
The Nifty PSU Bank index surged more than 3.5 per cent. Bank of India, Bank of Baroda, Punjab National Bank and Union Bank of India led the rise. Several of these lenders gained between 4 and 5 per cent. State Bank of India rose 2.56 per cent and ranked among the largest contributors. HDFC Bank and ICICI Bank also provided support. As a result, the Nifty Bank index gained nearly 891 points to close around 59,741.
PSU bank rally steadies Sensex and Nifty as IT slips
Among Sensex stocks, SBI, Trent, Larsen & Toubro, NTPC, HDFC Bank and ICICI Bank led the gainers. On the downside, HCL Technologies, Tata Steel, UltraTech Cement and Bajaj Finance declined. IT stocks faced profit-taking, and metal shares also weakened.
The broader market also ended higher. The Nifty Midcap 100 rose 0.55 per cent, while the Nifty Smallcap 100 added 0.10 per cent. However, market breadth stayed negative. Of the 3,698 stocks that traded on the NSE, 1,629 advanced and 1,959 declined, while 110 held steady. In other words, the gains came from a limited number of sectors.
Softer crude prices and strength in several Asian markets supported sentiment. Crude oil prices eased towards $96 a barrel during Indian trading hours. Japanese and Taiwanese equities posted sharp gains, and Chinese stocks also closed higher. Elsewhere in the region, however, trends varied.
Foreign portfolio investors bought Indian equities worth about Rs 38,971 crore in November up to 8 November, according to NSDL data. The total market capitalisation of NSE-listed companies stood at about Rs 502.21 lakh crore. In addition, 79 stocks reached 52-week highs, while 38 touched fresh one-year lows.
Analysts said the benchmarks were consolidating after a strong week. In the previous week, the Sensex gained more than 6,500 points and the Nifty nearly 2,000 points. Going forward, banking stocks, foreign flows, crude prices and the earnings season will likely set the direction. The weak breadth also suggests that investors remain selective. Traders will now watch whether the Nifty can hold above 25,000 while profit-booking continues in IT and metals.
