The S&P BSE Sensex climbed 672.92 points, or 0.8%, to 84,625.11, while the NSE Nifty 50 advanced 208.10 points, or 0.81%, to 25,917.95.
On the 30-share Sensex, Reliance Industries, Axis Bank, HDFC Bank, Kotak Mahindra Bank, and Infosys were among the top movers, gaining between 1% and 3%.
HDFC Bank and ICICI Bank, the country’s largest private lenders, reported stronger-than-expected September-quarter profits and an improvement in asset quality over the weekend. Shares of HDFC Bank rose 1%, while ICICI Bank slipped about 2%.
Reliance Industries advanced 2.7% even after missing profit estimates, as several brokerages highlighted resilience in its core operations, retail business, and earnings outlook.
Broader markets also firmed up, with the midcaps and smallcaps rising 0.7% and 0.2%, respectively.Expert views
The momentum in the market, triggered by sustained huge DII buying, marginal FII buying, news of brisk festival season sales of automobiles and white goods, is set to continue with more positive news, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that the early Q2 results indicate a sharp recovery in earnings, with results of HDFC Bank and RIL particularly impressive.
“The good results of HDFC Bank, particularly the improving asset quality, can sustain the momentum in Bank Nifty, which is already at record highs. The short-covering in the last few days is likely to continue, pushing the largecaps higher. The big concern in the market, which has been the poor earnings growth, is getting addressed now. The market is on track to set new highs soon. Sectors with tailwinds of growth are likely to outperform,” said Vijayakumar.
Meanwhile, Anand James, Chief Market Strategist at Geojit Investments said that Friday’s firm close sets up conditions for opening gains today, with eyes on 25875-900 and a fair possibility for further extension.
“If such stretches fail to push and float above 26018, expect volatility to set in. Downside marker in such a scenario would be at 25630, but a collapse is less expected,” said James.
Global Markets
Asian stocks surged on Monday, led by a 2.8% jump in Japan’s Nikkei, as reports suggested the Liberal Democratic Party and the Japan Innovation Party were set to form a coalition, paving the way for the country’s first female prime minister.
China’s economy outperformed expectations in Q3, growing 1.1%, with industrial output rising 6.5%, reinforcing Beijing’s resolve amid ongoing U.S. trade tensions. Chinese blue chips rebounded 1%, while South Korean shares added 1.0%, and MSCI’s broad Asia-Pacific index outside Japan gained 1.3%.
In Europe, EUROSTOXX 50 and DAX futures rose 0.6% each, with FTSE futures up 0.2%. Wall Street futures were modestly higher, with S&P 500 and Nasdaq futures up 0.2%, as investors focused on the upcoming earnings season.
Gold remained supported at $4,263 an ounce after surging nearly 6% last week, with $4,200 now acting as key technical support.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) bought equities worth nearly Rs 309 crore on October 17, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1,526.6 crore.
Crude impact
Oil prices dipped on Monday, pressured by worries over a global glut as escalating U.S.-China trade tensions added to concerns about an economic slowdown and weaker energy demand.
Brent crude futures fell 24 cents, or 0.4%, at $61.05 a barrel at 0032 GMT, while U.S. West Texas Intermediate futures were down 21 cents, or 0.4%, at $57.33, erasing gains from Friday.
Rupee vs Dollar
The Indian rupee strengthened 11 paise to 87.91 against the U.S. dollar in early Monday trading, as markets weighed last week’s central bank-driven rally against importer demand and a muted tone across Asian peers.
The dollar index traded lower at 98.42.
(with inputs from agencies)