Nifty, Sensex Rise As Weak US Data Trigger Fed Rate Cut Hope: Midday Market Update
At 12:09 p.m., the NSE Nifty 50 was trading 0.19% higher at 22,518.55, and the S&P BSE Sensex gained 0.34% to trade at 74,130.40.
India's benchmark indices were trading higher through midday on Monday as globally sentiments improve as weak economic data in the US triggered hope of an earlier than expected rate cut. Gains in shares of Kotak Mahindra Bank Ltd. and Tata Consultancy Services Ltd. supported the indices.
As of 12:09 p.m., the NSE Nifty 50 was trading 42.70 points, or 0.19%, higher at 22,518.55, and the S&P BSE Sensex gained 252.25 points, or 0.34%, to trade at 74,130.40.
Intraday, Nifty rose 0.50% to 22,588.80, and Sensex rose 0.65% to 74,359.69.
"Asian market traded higher this morning, and the dollar held broadly steady, while oil and gold prices saw modest gains," said Avdhut Bagkar technical and derivatives analyst, StoxBox.
Indian markets opened higher on Monday, buoyed by improved global sentiment, as weak US data raised hopes that the Federal Reserve could start cutting interest rates soon, Bagkar said.
Progressive Share Broker Pvt. Director, Aditya Gaggar, continued to hold out positive stance on the auto and metal sectors, as both of them are moving on expected lines which boosts confidence, he said.
Shares of Kotak Mahindra Bank Ltd., Tata Consultancy Services Ltd., Infosys Ltd., HDFC Bank Ltd., and Bharti Airtel Ltd. were positively contributing to the Nifty.
While those of Titan Co., State Bank of India, Reliance Industries Ltd., NTPC Ltd., Larsen & Toubro Ltd. were weighing on the index.
On NSE, seven sectors declined and five advanced. The NSE Nifty PSU Bank fell the most, and NSE Nifty Realty advanced the most.
Broader markets underperformed the benchmark indices. Both the S&P BSE Midcap and the S&P BSE Smallcap declined 0.78%.
On BSE, 13 sectors declined and seven advanced. The S&P BSE Utilities was the worst performer, while the S&P BSE Realty was the best performer.
Market breadth was skewed in the favour of the sellers. Around 2,446 stocks declined, 1,263 stocks advanced, and 186 stocks remained unchanged on BSE.
