Sensex rises 430 points in early trade on positive global trends

A look at the Bombay Stock Exchange (BSE). File photo | Photo credit: REUTERS

Equity benchmark indices Sensex and Nifty rose in early trade on Monday (October 14, 2024), supported by buying in banking and financial stocks amid a positive trend in global equities.

The 30-share BSE Sensex jumped 460.38 points or 0.57 percent to 81,841.74 in early trade. The NSE Nifty climbed 138.80 points or 0.56 percent to 25,103.05.

Among the 30 Sensex companies, Larsen & Toubro, JSW Steel, HDFC Bank, Tech Mahindra, Adani Ports & Special Economic Zone, IndusInd Bank, NTPC and Infosys were the gainers.

In contrast, Axis Bank, Bajaj Finance, UltraTech Cement, Maruti Suzuki India, Tata Consultancy Services (TCS), Asian Paints, Nestle India and Hindustan Unilever were among the laggards.

Foreign institutional investors (FIIs) offloaded shares worth ₹4,162.66 crore on Friday while domestic institutional investors (DIIs) bought shares worth ₹3,730.87 crore, exchange data showed.

“This month, till October 11, FPIs have sold equity for ₹58,710 crore. This massive selling did not have any serious impact on the market as the entire FPI selling was absorbed by DIIs which are receiving sustained fund inflows.”

“This trend of FII selling and DII buying is likely to continue in the near term as Chinese equities remain cheap compared to high valuations in India,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

In Asian markets, Tokyo, Shanghai and Seoul were in the green, while Hong Kong was in the negative.

“IT and banking stocks are likely to remain resilient due to expected good Q2 numbers. However, there is limited scope for the market to rise sharply from here,” Vijayakumar said.

Wall Street ended Friday with gains.

Uncertainty surrounding next month’s US presidential election is likely to weigh on markets, as is geopolitical tensions in the Middle East, he added.

Global oil benchmark Brent Crude fell 1.09 percent to $78.18 a barrel.

On Friday, the BSE Sensex fell 230.05 points to close at 81,381.36 and the NSE Nifty slipped 34.20 points to close at 24,964.25.