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Markets on a roll: Sensex reclaims key 58K-level; Nifty above 17,300

Tracking global peers, the 30-share Sensex opened on a positive note and firmed up gains as the morning trade progressed. The index finally settled 545 points or 0.95 percent higher at 58,115. Likewise, the NSE Nifty advanced 182 points or 1.06 percent to close at 17,340 – its best closing level since April 13 this year.

ET Now Digital

Updated Aug 1, 2022, 15:41 IST

Sensex rises for 4th day, jumps over 500 pts

Photo : BCCL

Mumbai: Extending its winning run for the fourth straight session, the BSE Sensex surged nearly 550 points to settle above the key 58,000-level for the first time in nearly four months on Monday, led by hectic buying mainly in auto, oil&gas and consumer stocks.

Tracking global peers, the 30-share Sensex opened on a positive note and firmed up gains as the morning trade progressed. The index finally settled 545 points or 0.95 percent higher at 58,115.

Likewise, the NSE Nifty advanced 182 points or 1.06 percent to close at 17,340 – its best closing level since April 13 this year.

On the Sensex chart, M&M, NTPC, Reliance, Maruti and PowerGrid were major gainers – rising as much as 6 percent.

On the other hand, Sun Pharma, HUL, Nestle, IndusInd Bank and Asian Paints ended with losses.

Broader midcap, smallcap and largecap indices of the BSE outperformed the benchmark, rising 1.51 percent, 1.45 percent and 1.14 percent, respectively.

"The 9 percent rally in Nifty in July is in sync with the 9 percent rally in S&P 500. The pull back in US and other developed markets was facilitated by the strong employment numbers and resilience of the US economy, triggering hopes that the US might succeed in avoiding a recession, or if the recession happens, that would be a mild one,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The big positive for the Indian market is the FPIs turning buyers in July after 9 months of relentless selling. The sharp decline in the dollar index from above 109 to below 106 now indicates that the flight to the safety of the dollar is over for now.

After the expected run up in financials, now, capital goods, autos particularly PV and CV segments and select pharmaceuticals look interesting. High quality financials will continue to be resilient, he added.

Globally, shares hit seven-week highs on Monday, buoyed by recent strong corporate earnings and hopes that central banks would be less aggressive on rate hikes, while the dollar slid against the yen as speculators exited suddenly unprofitable short positions.

Global shares gained 7 percent last month and bond markets rallied as investors started to look for a peak in official interest rates, given slowing economic growth.

Markets have gathered steam after last week's 75-basis-point Federal Reserve hike and comments on the economy from Fed chair Jerome Powell.

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