MUMBAI— Indian equity benchmarks closed in the green on Monday, led by strong gains in IT heavyweights as investors bet on an interest rate cut by the U.S. Federal Reserve next month.
The Sensex rose 329 points, or 0.40 percent, to finish at 81,635.91, recovering from Friday’s sharp decline. The 30-share index opened firm at 81,501.06 and climbed to an intraday high of 81,799.06 before settling in a narrow range. The Nifty advanced 97.65 points, or 0.39 percent, to close at 24,967.75.
“A wave of optimism swept through the domestic market, driven by expectations of a Fed rate cut in September and a subsequent decline in the U.S. 10-year yield,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that domestic factors remain favorable, with GST rationalisation expected to bolster consumption and a strong monsoon likely to support growth despite global trade uncertainties.
Infosys, TCS, HCL Tech and Tech Mahindra led the rally on the back of upbeat sentiment in global technology stocks. Other major gainers included Sun Pharma, Bajaj Finance, Tata Motors, Maruti Suzuki, Tata Steel and Titan. On the downside, BEL, Asian Paints and Bharti Airtel ended in the red.
Sectorally, Nifty IT surged 2.37 percent, or 839.20 points, outperforming all other indices. Nifty Auto climbed 0.37 percent, while financial services and banking stocks ended largely flat. Broader indices also remained positive, with Nifty Next 50 up 0.25 percent, Nifty 100 advancing 0.37 percent and Nifty Midcap 100 adding 0.12 percent.
Meanwhile, the rupee weakened by 7 paise to close at 87.58 against the U.S. dollar as the greenback regained strength. The dollar index inched back toward 98.00 after the Fed signaled a September cut.
“While the rupee opened with a minor gap-up, it quickly gave up gains as dollar strength resurfaced. Persistent foreign institutional outflows remain a drag,” said Jateen Trivedi of LKP Securities. He pegged support for the rupee at 87.95–88.10, with resistance at 87.25–87.50.
Market watchers said the next cues for Indian equities and currency will come from Fed Chair Jerome Powell’s policy stance, crude oil trends, and the trajectory of foreign inflows. (Source: IANS)
