Mumbai: India’s stock indices notched up gains on Monday as easing trade tensions between the US and China boosted investor sentiment across the region. Investors now await the US Federal Reserve’s rate decision on Wednesday to decide on the market direction.
The NSE Nifty finished at 25,966, up 0.7% or 170 points. The BSE Sensex ended at 84,778, 0.7% or 566 points higher. Both indices are around 1% away from their record closing levels hit in late September last year.
“The US China treaty sparked investor optimism as the finalisation of the same would imply certainty in global markets that has been lacking,” said Pranay Aggarwal, director and CEO of Stoxkart.
Aggarwal said the rally is likely to sustain as Nifty is expected to move towards 26,500 in the near term, especially once the US India trade deal is announced in November.
Agencies
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Most Asian markets ended higher on Monday. At home, the Nifty PSU Bank Index climbed 2.2% on Monday, while Bank Nifty rose 0.7%. Nifty Realty and oil & gas indices gained 1.5% each. Nifty Metals index advanced 1.2%.
Foreign portfolio investors (FPIs) sold shares worth a net ₹55.58 crore on Monday. Their domestic counterparts bought shares worth ₹2,492.12 crore. In October, global investors bought shares worth ₹1,768 crore.
Technical analysts are watching whether the Nifty is able to pierce the 26,250 level.
“If Nifty successfully surpasses 26,250 and heads towards 26,500, then the rally could sustain,” said Ruchit Jain, head – technical research, Motilal Oswal Financial Services. “On the downside, 20-day exponential moving average of 25,450 levels is the immediate support.”
The Nifty Mid-cap 150 and the Small-cap 250 indices advanced 0.8% and 0.7%, respectively. Out of the 4,502 shares traded on BSE, 2,099 advanced, while 2,198 declined.
In the past week, the mid-cap and small-cap indices climbed 0.6% and 1%, respectively.
“The continuation of upmove is expected and the participation of mid and small-cap stocks indicates Nifty could make fresh highs in the next week,” said Jain.
Agencies