]
Business: Major stock market indices Sensex and Nifty rose in early trade on Monday due to buying in big companies like Reliance Industries, HDFC Bank and foreign fund inflows. A sharp rise in global markets also boosted optimism in the market during early trade. In early trade, the 30-share BSE Sensex rose 704.37 points to 84,656.56. The 50-share NSE Nifty rose 216.35 points to 25,926.20.
Reliance shares increased by more than two percent
Among Sensex companies, Reliance Industries registered a gain of more than 2 percent. The company said on Friday that the net profit in the September quarter has increased by 9.6 percent on an annual basis. The growth was driven by strong performance in consumer-focused retail and telecom businesses and improvement in the oil to chemicals sector.
Shares of HDFC Bank gained 1.54 per cent as the company on Saturday reported that its September quarter consolidated net profit rose 10 per cent to Rs 19,610.67 crore. Axis Bank, Kotak Mahindra Bank, Infosys and Bajaj Finserv were also among the gainers. However, ICICI Bank, UltraTech Cement, Trent and Tata Steel were among the laggards.
There was a rise in other Asian stocks also
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading with gains. On Friday, US markets closed in positive territory. According to exchange data, foreign institutional investors (FIIs) bought shares worth Rs 308.98 crore on Friday. Domestic institutional investors (DIIs) also bought shares worth Rs 1,526.61 crore on the same day.
What is the reason for the surge in the market?
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “The market rally driven by continued heavy buying by DIIs, modest buying by FIIs, pick-up in sales of automobiles and household items during festivals is expected to continue with more positive news. Early Q2 results indicate sharp improvement in earnings. HDFC Bank and RIL The results are particularly impressive.”
Global oil benchmark Brent crude fell 0.36 percent to $61.07 per barrel. On Friday, the Sensex closed 484.53 points or 0.58 per cent higher at 83,952.19, while the Nifty closed 124.55 points or 0.49 per cent higher at 25,709.85. Last week, the BSE benchmark rose 1,451.37 points or 1.75 per cent, and the Nifty gained 424.5 points or 1.67 per cent.
