Mumbai, equity benchmarks Sensex and Nifty closed higher on Monday as buying in energy, auto and industrial stocks helped the indices recover from early lows amid a bearish trend in equity markets. global values.
However, volatility in the markets ahead of the week's monthly expiry and selling pressure on metals and oil and gas counters kept investors on the defensive, traders said.
The 30-share BSE Sensex ended 131.18 points, or 0.17 per cent, higher at 77,341.08. In early trading, the benchmark index had fallen 463.96 points, or 0.60 percent, to 76,745.94.
It subsequently recovered 213.12 points, or 0.27 percent, to 77,423.02 during the day.
The Nifty rose 36.75 points, or 0.16 per cent, to settle at 23,537.85.
"Markets remained volatile ahead of this week's monthly expiry as key benchmark indices ended with modest gains after a sharp drop in early trade amid selective buying in auto, energy and capital goods stocks, while sales in IT, metals and oil & gas capped gains.
"Stocks could see sharp swings during the week as investors resort to value buying on select counters," said Prashanth Tapse, senior vice president (research) at Mehta Equities Ltd.
Among the 30 Sensex companies, Mahindra & Mahindra, Power Grid, Sun Pharma, Nestle, UltraTech Cement, NTPC, ITC, ICICI Bank, Titan, Bajaj Finserv, Bharti Airtel and HDFC Bank were among the top gainers.
IndusInd Bank, Adani Ports, Tata Steel, Reliance Industries, Axis Bank and Bajaj Finance were among the laggards.
In the broader market, the BSE midcap gauge rose 0.37 per cent and the small cap index rose 0.27 per cent.
Among the sectoral indices, the automobile index rose 1.33 percent, the energy index (1.28 percent), the industrial index (1 percent), the public services index (0.88 percent) and the of discretionary consumption (0.87 percent).
On the other hand, raw materials, information technology, metals and services lagged the most.
"Although the market is on a path of consolidation, sectoral turmoil is visible in consumer goods and consumer durables in anticipation of budget expectations.
"Better tax collection and dividends from the RBI will encourage the Government of India in rural spending and tax benefits. In mid and small cap companies, although there is still a lack of safety margin in terms of valuation, investors are more interested "in the growth story in capital goods, infrastructure, automobiles, etc.," said Vinod Nair, head of research at Geojit Financial Services.
S&P Global Ratings on Monday maintained India's GDP growth forecast for the current financial year at 6.8 per cent and said high interest rates and lower fiscal stimulus would temper demand.
In its economic outlook for Asia Pacific, S&P Global Ratings said India's economic growth continues to surprise on the upside, with the economy growing at 8.2 per cent in fiscal year 2023-24.
In Asian markets, Seoul, Shanghai and Hong Kong closed lower, while Tokyo finished in positive territory.
European markets were trading with gains. US markets finished mostly lower on Friday.
Foreign institutional investors (FIIs) offloaded shares worth Rs 1,790.19 crore on Friday, according to exchange data.
Global benchmark Brent crude rose 0.41 percent to $85.59 a barrel.
Breaking its six-day rally, the BSE benchmark index fell 269.03 points, or 0.35 per cent, to settle at 77,209.90 on Friday. The NSE Nifty fell 65.90 points, or 0.28 per cent, to end at 23,501.10.
However, volatility in the markets ahead of the week's monthly expiry and selling pressure on metals and oil and gas counters kept investors on the defensive, traders said.
The 30-share BSE Sensex ended 131.18 points, or 0.17 per cent, higher at 77,341.08. In early trading, the benchmark index had fallen 463.96 points, or 0.60 percent, to 76,745.94.
It subsequently recovered 213.12 points, or 0.27 percent, to 77,423.02 during the day.
The Nifty rose 36.75 points, or 0.16 per cent, to settle at 23,537.85.
"Markets remained volatile ahead of this week's monthly expiry as key benchmark indices ended with modest gains after a sharp drop in early trade amid selective buying in auto, energy and capital goods stocks, while sales in IT, metals and oil & gas capped gains.
"Stocks could see sharp swings during the week as investors resort to value buying on select counters," said Prashanth Tapse, senior vice president (research) at Mehta Equities Ltd.
Among the 30 Sensex companies, Mahindra & Mahindra, Power Grid, Sun Pharma, Nestle, UltraTech Cement, NTPC, ITC, ICICI Bank, Titan, Bajaj Finserv, Bharti Airtel and HDFC Bank were among the top gainers.
IndusInd Bank, Adani Ports, Tata Steel, Reliance Industries, Axis Bank and Bajaj Finance were among the laggards.
In the broader market, the BSE midcap gauge rose 0.37 per cent and the small cap index rose 0.27 per cent.
Among the sectoral indices, the automobile index rose 1.33 percent, the energy index (1.28 percent), the industrial index (1 percent), the public services index (0.88 percent) and the of discretionary consumption (0.87 percent).
On the other hand, raw materials, information technology, metals and services lagged the most.
"Although the market is on a path of consolidation, sectoral turmoil is visible in consumer goods and consumer durables in anticipation of budget expectations.
"Better tax collection and dividends from the RBI will encourage the Government of India in rural spending and tax benefits. In mid and small cap companies, although there is still a lack of safety margin in terms of valuation, investors are more interested "in the growth story in capital goods, infrastructure, automobiles, etc.," said Vinod Nair, head of research at Geojit Financial Services.
S&P Global Ratings on Monday maintained India's GDP growth forecast for the current financial year at 6.8 per cent and said high interest rates and lower fiscal stimulus would temper demand.
In its economic outlook for Asia Pacific, S&P Global Ratings said India's economic growth continues to surprise on the upside, with the economy growing at 8.2 per cent in fiscal year 2023-24.
In Asian markets, Seoul, Shanghai and Hong Kong closed lower, while Tokyo finished in positive territory.
European markets were trading with gains. US markets finished mostly lower on Friday.
Foreign institutional investors (FIIs) offloaded shares worth Rs 1,790.19 crore on Friday, according to exchange data.
Global benchmark Brent crude rose 0.41 percent to $85.59 a barrel.
Breaking its six-day rally, the BSE benchmark index fell 269.03 points, or 0.35 per cent, to settle at 77,209.90 on Friday. The NSE Nifty fell 65.90 points, or 0.28 per cent, to end at 23,501.10.
