Stock market indices gained smartly on Monday as the benchmark Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) gained by more than 450 points on the back of strong rupee appreciation. The Sensex was up by 451.32 points to close at 20850.74 compared to its previous close of 20399.42. On the National Stock Exchange (NSE), a broader 50-share Nifty closed at 6189 with a gain of 132.85 points .
Meanwhile the rupee closed at 62.41 per dollar compared to its previous close of 63.11. However, it touched a high of 62.38 in the intra-day trades.
“ Domestic markets continued to gain momentum on back of strong global cues and Nifty taking the support of the psychological mark of 6000 it tested last week,” said Jayant Manglik, President-Retail Distribution, Religare Securities Limited. “The rupee appreciating against the dollar in the second half also helped the equity markets to close near the day’s high,” he added.
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“While quantitative easing (QE) taper is an eventuality, recent comments from the incoming U.S. Federal Reserve Chairperson indicating that the stimulus needs to continue longer has receded fears of an early taper in light of stronger than anticipated data last week. This has once again led to positive sentiments in the markets,” Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mutual Fund.
The result season ended with no major negative surprises except a few stocks from the public sector banks and capital goods sector.