Stock markets rise for 4th day on global rally, gains in banking shares after RBI rate cut
Mumbai, Jun 9 (PTI): Stock markets closed higher for a fourth consecutive day on Monday driven by gains in banking and financial shares and a rally in global markets.
The 30-share BSE Sensex climbed 256.22 points or 0.31 per cent to settle at 82,445.21 as 21 of its constituents closed higher and nine declined. During the day, it jumped 480.01 points or 0.58 per cent to 82,669.
The 50-share NSE Nifty surged 100.15 points or 0.40 per cent to 25,103.20.
In the four-day rally to Monday, Nifty has gained over 560 points or 2.27 per cent while Sensex has jumped 1,707 points or 2.1 per cent.
Optimism over a new round of trade talks between the US and China also drove the markets higher.
Analysts said the RBI's jumbo 50 basis point rate cut last week has boosted investor sentiment helping most sectoral indices close higher. Energy, IT, and financial sectors emerged as lead gainers while broader market indices outperformed benchmark indicators.
"Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Among Sensex stocks, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, Power Grid, IndusInd Bank, Maruti, Bajaj Finserv and NTPC were the biggest gainers.
However, Eternal, ICICI Bank, Titan, Mahindra & Mahindra, Adani Ports, Tata Steel and Bharti Airtel were among the laggards.
"Equity markets continued to ride the momentum from last week’s RBI policy surprise, with the Nifty-50 opening strong and extending gains on Monday. Except for realty, all major sectors ended with gains with realty likely weighed down by profit-booking after the recent rally.
"Broader mid- and small-caps continued to outperform the benchmarks and posted strong gains on positive RBI surprise lifting sentiment for domestic outlook," Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
The BSE smallcap gauge jumped 1.19 per cent and midcap climbed 1.03 per cent.
Among sectoral indices, utilities rallied 1.65 per cent, power (1.43 per cent), services (1.35 per cent), oil & gas (1.12 per cent), IT (1.02 per cent) and energy (0.93 per cent).
Realty emerged as the only laggard.
As many as 2,798 stocks advanced while 1,409 declined and 128 remained unchanged on the BSE.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory. European markets were trading marginally lower. US markets ended sharply higher on Friday.
"The positive US jobs data and renewed optimism over US-China trade talks lifted global sentiment," Nair said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,009.71 crore on Friday, according to exchange data.
Global oil benchmark Brent crude went up 0.30 per cent to USD 66.67 a barrel.
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Man arrested with Rs 2.54-crore heroin in Mumbai
Mumbai (PTI): Police have arrested a man and seized over 500 grams of heroin worth Rs 2.54 crore in the illicit market from him in Mumbai, officials said on Friday.
The police's Anti-Narcotics Cell (ANC) made the drug seizure in Santacruz in the western suburbs. The operation was conducted by the Kandivali unit of the ANC on Thursday as part of a special crackdown against drug trafficking in the area, they said.
Acting on specific inputs, an ANC team conducted a raid in Santacruz (East) and intercepted a man. During a search, the team recovered 508 grams of high-grade heroin from his possession, an official said.
The seized contraband, a highly addictive, opioid drug derived from morphine, is estimated to be worth Rs 2.54 crore in the international market, he informed.
Following the seizure, a case was registered against the man under relevant sections of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, and he was formally placed under arrest in the early hours of Friday.
The police are currently investigating the source of the drug and trying to identify the intended recipients of the consignment, he said.
