Mumbai (Maharashtra) [India], September 2 (ANI): The Indian equity market closed on a positive note on Monday, supported by gains in consumer goods and information technology (IT) stocks.
At the close of trading, the Sensex gained 194 points to reach 82,560, while the Nifty rose 43 points to 25,279.
However, the midcap index fell by 134 points to 59,153, while the Nifty Bank gained 89 points, closing at 51,440.
Out of the 4,008 companies traded, 1,684 advanced, 2,191 declined, and 133 remained unchanged during the trading day.
Investors are keenly awaiting the Goods and Services Tax (GST) data for August. Meanwhile, India’s Manufacturing Purchasing Managers’ Index (PMI) saw a slight decline in August, falling to 57.5 from 58.1 in July, according to a report by HSBC India Manufacturing PMI.
Foreign portfolio investors have shown renewed interest in the Indian equity markets. Globally, stock markets remained cautious ahead of major data releases this week, with markets exhibiting flat movement.
“Markets are gradually inching higher each day, buoyed by favourable global cues and rotational buying in heavyweight stocks. However, the ongoing underperformance of banking majors continues to dampen sentiment. Given this scenario, we recommend aligning trades with the prevailing trend and seeking buying opportunities on market dips,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
“The market has entered a phase of steady but mild upward movement, driven by the accumulation of quality large-cap stocks. FIIs turning buyers last week, mainly due to some large bulk deals, has also improved market sentiment. If the market closes positive today, it will mark a record for the Indian stock market, with the Nifty posting a 13-day winning streak. Sentiment-wise, this is positive,” stated V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Sectoral churns are happening faster now than earlier. IT has rebounded on hopes of increased tech spending in the US, which the expected soft landing of the US economy is likely to facilitate. Pharma stocks are witnessing accumulation due to improving business prospects. Profit booking is occurring in segments like railways and defence, triggered by valuation concerns,” he added.
According to Vijayakumar, the first quarter GDP data for the financial year 2025, which stood at 6.7 per cent, indicates mild sluggishness in the economy. This may prompt the RBI to consider rate cuts in the next monetary policy meeting. Even though banks are struggling with deposits, rate cuts could improve prospects for banking stocks, he said.
(ANI)
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