Mumbai — Indian stocks closed higher Monday as falling crude oil prices and softer global bond yields improved investor sentiment, while gains in heavyweight and defensive stocks helped offset weakness in the broader market.
The Sensex rose 564.03 points, or 0.76%, to close at 74,858.99. The Nifty gained 67.90 points, or 0.29%, to end at 23,414.30.
Market experts said the Nifty remained above 23,300, keeping its short-term recovery intact. They identified resistance at 23,500 to 23,600, with immediate support at 23,300 and 23,200.
Sentiment was supported by easing concerns over inflation after crude oil prices declined. Lower global bond yields also encouraged buying in selected large-cap stocks.
Among Nifty constituents, Eternal, HCL Technologies and SBI Life Insurance Company were among the top gainers.
The broader market was weaker, with the Nifty MidCap index falling 0.29% and the Nifty SmallCap index declining 0.07%.
Defensive and consumption-focused sectors performed strongly. The Nifty FMCG, Pharma, Healthcare, Realty and Consumer Durables indices posted gains as investors moved toward sectors viewed as relatively resilient amid global uncertainty.
Metal and state-owned banking stocks, however, came under pressure. The Nifty Metal and Nifty PSU Bank indices ended lower and were among the session’s main laggards.
“Improving sentiment ahead of the upcoming US-China talks, renewed hopes of diplomatic engagement between the US and Iran at the UN, and the decline in oil prices and bond yields have provided relief to investors,” market watchers said.
Analysts said easing concerns over inflation and energy costs also supported the broader market recovery.
The rupee strengthened about 0.11% to 95.81 against the U.S. dollar. Market experts attributed the move partly to a nearly 7% decline in crude oil prices over the previous two to three sessions, with crude trading around $91.50.
Analysts said the rupee could trade in a range of 95.45 to 96.15. (Source: IANS)
