2024-01-29 04:42:51
Indian stocks rose on Monday, thanks to a rebound in flagging financial stocks and tracking gains in Asian markets.
The NSE Nifty 50 index rose 1 per cent to 21,567.15 points and the S&P BSE Sensex index was up 0.97 per cent at 71,395.13 points at 9:59 am IST.
Asian markets rose, led by China following the country’s markets regulator said it would completely suspend restricted stock lending, in an attempt to stabilize the country’s stock markets.
At the same time, the Federal Reserve’s favored inflation rate showed moderating prices in December, bolstering hopes for a quick cut in interest rates.
Nationally, 12 of 13 sectors saw gains. Financial services, which have the highest weight, increased by 1.3%.
Financial stocks have lost 6.28 per cent in the last seven sessions since leading private lender HDFC Bank reported disappointing quarterly results. The benchmark Nifty index lost around 3% during the same period.
HDFC Bank, which itself had lost 14.6% during these seven sessions, rose 1.3% on the day.
“We believe that the bulk of the selling pressure has passed and the benchmark Nifty may consolidate near current levels in the coming sessions ahead of the Fed’s decision on interest rates and the Union Budget ( of India) expected later this week,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.
“While the Fed might give more details on the potential timing of rate cuts, India’s interim budget might highlight sectors such as infrastructure due to the likely increase in allocations.
The Federal Reserve’s decision on interest rates will be made on Wednesday and India’s budget will be presented on Thursday.
Among individual stocks, Oil and Natural Gas Corporation jumped 4% and was the biggest gainer on the Nifty 50, helped by Brent oil futures hitting their highest level in eight weeks.
Shares of SBI Cards and Payment Services lost 6% following the company reported lower-than-expected profit for the third quarter, due to higher financial costs. (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun HK and Sonia Cheema)
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