Banking stocks drive Sensex 111 pts higher from deep red; Nifty above 22,100

Among the Sensex stocks, , , , , and emerged as the top gainers, finishing the session on a positive note. Conversely, Tata Motors, Tech Mahindra, ITC, IndusInd Bank, and HCL Tech ended the day in the red.

Tata Motors shares closed 8.3% lower after three major global brokerages Goldman Sachs, Morgan Stanley and Nomura downgraded the stock while Citi suspended its rating on Tata Motors following a weaker outlook for FY25.

Cipla shares ended 6% higher after the firm reported a net profit of Rs 939 crore for the quarter ended March 2024. The profit surged 79% from Rs 525 crore posted in the last-year period.

fell 1.7%, while dropped 1.2% lower, weighed down by and . Conversely, Pharma, Healthcare, and Realty emerged as the top sectoral gainers.

The market breadth was skewed in the favour of the bears. About 2,176 stocks dropped, 1,780 gained, and 130 remained unchanged on the BSE.

Experts View
"Though the market reversed from the day’s low and ended up with a marginal gain, investors remain concerned over the progressing general election and high valuation. An absence of major positive triggers and the flight of FIIs from the domestic market will keep the short-term trend weak. Investors remain watchful ahead of the release of India and US inflation data and the FED chair’s speech to get a near-term direction," said Vinod Nair, Head of Research, Geojit Financial Services

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction. Additionally, the stock has found support around the previous swing low on the daily timeframe. However, the index's recovery may encounter resistance in the 22150-22200 zone, and only a decisive move above 22200 could trigger a stronger rally in the market. On the lower end, support is situated at 21950."

Global Markets
neared record highs on Monday, in a week where inflation figures could make or break expectations for earlier U.S. rate cuts, while Chinese activity data will test optimism about a sustained recovery in the world's No. 2 economy.

The improved sentiment has helped lift Chinese blue chips to a seven-month high and the positive vibes carried over into Europe, where the STOXX 600 held near record highs and U.S. stock futures rose 0.1%.

The MSCI All-World index nudged higher on Monday and is now less than 0.5% away from March's record highs.

Crude Oil
Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp energy use in the world's biggest economy.

Brent crude futures slid 25 cents, or 0.27%, to $83.01 a barrel, while U.S. West Texas Intermediate crude futures were at $78.54 a barrel, up 30 cents.

Rupee Ends Lower
The Indian rupee closed marginally lower after a range-bound trading session on Monday, tracking a decline in most regional peers ahead of data that could help gauge the timing of a policy reversal by the Federal Reserve.

The rupee ended at 83.53 to the U.S. dollar, down from 83.50 in the previous session. The domestic unit traded in a narrow four-paise range in Monday's session.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)