The return of FIIs, positive earnings of PSU banks in Q1 and buying in the broader market fueled the bullish sentiment. The robust mutual fund inflow data released by the Association of Mutual Funds in India (AMFI) also boosted the market momentum in the last trading hours.
Sensex settled at 80.604.08, up 746.29 points or 0.93 per cent. The 30-share index started the session flat at 79,885.36 against last session’s closing of 79,857.79. Later, the index experienced an overall heavy buying amid the return of FIIs and robust Mutual Fund Inflow data for July. The Index touched an intraday high at 80,636.05.
Nifty ended the session at 24,585.05, up 221.75 points or 0.91 per cent.
“The market saw a relief rally post a 3-month low; a positive global cue and a gradual return of FIIs supported the sentiment,” said Vinod Nair, Head of Research, Geojit Investments Limited
The PSU banks took the limelight amidst Q1 results from the banking major, while a broad-based momentum was visible across all sectors.
Investors are positively assessing the upcoming US-Russia Summit this week, which may possibly give way to a de-escalation in geopolitical tensions, Nair added.
Tata Motors, Eternal, Adani Ports, Trent, SBI, L&T, Mahindra and Mahindra, Axis Bank, Sun Pharma, HDFC Bank, HCL Tech and Kotak Bank were among the top gainers. While Bharati Airtel, BEL and ICICI Bank closed slightly lower.
The majority of sectoral indices grabbed the bullish momentum amid value buying. Nifty Fin Services surged 238 points or 0.91 per cent, Nifty Bank soared 505 points or 0.92 per cent, Nifty Auto jumped 249 points or 1 per cent, and Nifty IT settled the session 146 points or 0.42 per cent higher.
The broader market followed suit as well. Nifty Next 50 jumped 769 points or 1.17 per cent, Nifty 100 settled the trading 238 points or 0.96 per cent up, Nifty Midcap 100 swelled 476 points or 0.85 per cent, and Nifty Small Cap 100 closed, jumping 63 points or 0.36 per cent.
Equity-oriented mutual funds saw net inflows of Rs 42,702 crore in July, up 81 per cent from Rs 23,587 crore in June, AMFI data showed on Monday.
By the end of July, the mutual fund industry’s net assets under management (AUM) increased to Rs 75.36 lakh crore. The AUM stood at Rs 74.40 lakh crore in June and Rs 72.19 lakh crore in May, according to monthly data released by AMFI.
Gold prices weakened as news of the US President Donald Trump’s scheduled meeting with Russian President Vladimir Putin on August 15 to discuss the Russia-Ukraine war sent strong signals of a possible resolution, triggering profit booking.
“Comex gold slipped from $3,400 to $3,355, while MCX gold declined by Rs 1,200 to Rs 1,00,550. This week, U.S. CPI and Core CPI data will be in focus for further cues. Gold price range is seen between Rs 99,500–Rs 1,02,000,” said Jateen Trivedi of LKP Securities.
