Expectations of a good monsoon and better-than-expected quarterly numbers pushed the benchmark equity indices on Monday to register their longest winning streak since November.
The gains in the Indian indices came amid a mixed trend in the global markets after growing tensions between the U.S. and Russia over the attacks on Syria.
The 30-share Sensex rose 112.78 points or 0.33% to 34,305.43. In the last eight trading sessions, the benchmark has gained 1,286 points. The broader Nifty closed on Monday at 10,528.35, rising 47.75 points or 0.46%.
Initial bout of weakness
Interestingly, the gains in the indices came after an initial bout of weakness as technology stocks witnessed selling pressure. The market was disappointed as Infosys forecast lower-than-expected margins on Friday.
Infosys was the second-worst performer among Sensex stocks, declining 3.1% to close at ₹1,132.80.
Even as the benchmark reversed the morning trend, the market breadth, however, remained weak with 1,463 stocks losing ground as against 1,211 gainers.
“Initially, lingering geopolitical concerns and weakness in Infosys were weighing on the sentiment which led to a weak start,” said Jayant Manglik, president, Religare Broking. “However, anticipation of good monsoon and favourable earnings season triggered gradual recovery in the latter half, helping the index to recoup losses and settle with decent gains,” he added.
The India Meteorological Department has forecast a normal monsoon at 97% of long term average (LTA) for this season.Monsoon of between 96-104% of LTA is considered to be normal, according to Care Ratings.
Shares of Tata Motors fell following reports its subsidiary Jaguar Land Rover planned to cut about 1,000 jobs and production at two of its U.K. plants on lower sales. Tata Motors was the worst-performer in the Sensex pack, shedding almost 5% to close at ₹338.95.
UCO Bank was also in the limelight after the bank’s former CMD Arun Kaul was booked by the CBI for allegedly cheating the bank of about ₹738 crore. The bank was the biggest loser among ‘A’ group stocks on the BSE, falling 6.49% to ₹20.90.
The first information report in the matter has also named Delhi-based Era Engineering Infra India Limited, its chief managing director Hem Singh Bharana and six other directors, besides chartered accountants Pankaj Jain and Vandna Sharda as the accused entities.
