Image Source : FILE Business stock exchange building.
The Sensex surged by 443 points to close at a new all-time high of 79,476.19, while the Nifty climbed 131.35 points to end above the 24,100 mark at 24,141.95, hitting fresh lifetime highs on Monday. Major contributors to the rally included Tech Mahindra, UltraTech Cement, Bajaj Finance, Hindustan Unilever, Tata Consultancy Services, JSW Steel, Infosys, HDFC Bank, Tata Motors, and ICICI Bank. However, NTPC, State Bank of India, Larsen & Toubro, Sun Pharma, IndusInd Bank, and Axis Bank were among the laggards.
Global market influence
Positive trends in Asian markets, including Seoul, Tokyo, and Shanghai, along with gains in European markets, supported the domestic rally. The optimism was bolstered by a reduction in US PCE inflation, raising hopes for a rate cut by the US Federal Reserve in September, particularly benefiting IT stocks.
Economic insights
Vinod Nair, Head of Research at Geojit Financial Services, noted that the reduction in US PCE inflation spurred hopes for a Fed rate cut, contributing to the strong performance of IT stocks.
Oil and FIIs activity
Global oil benchmark Brent crude climbed 0.51% to USD 85.43 per barrel. Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 23.09 crore on Friday, according to exchange data.
Market recap
On Friday, the BSE benchmark had declined by 210.45 points to settle at 79,032.73, despite hitting an intra-day record peak of 79,671.58. The Nifty also went lower by 33.90 points to 24,010.60, having touched a new lifetime high of 24,174 during the session.
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