Domestic stock markets started Monday’s session on cautious note amid weakness in Asian peers. The S&P BSE Sensex index rose as much as 160.43 points to 38,043.22 in early trade, and the broader NSE Nifty benchmark moved to 11,310.95, up 26.65 points from the previous close. Gains in banking and information technology shares were offset by losses in auto and metal stocks. The government ruled out reconsidering a plan to issue foreign currency overseas sovereign bonds, despite warnings of long-term risk for the economy.
At 9:17 am, the Sensex traded 39.49 points – or 0.10 per cent – higher at 37,922.28 while the Nifty was up 5.60 points – or 0.05 per cent – at 11,289.90.
Top percentage gainers on the 50-scrip index were ICICI Bank, Axis Bank, HCL Tech, Bajaj Finance, Bajaj Finserv and TCS, trading between 0.47 per cent and 3.67 per cent higher.
ICICI Bank, TCS, Axis Bank and Infosys were the top contributors to the advances in Sensex.
ICICI Bank shares rose as much as 4.57 per cent in early deals, after the private sector banking major reported a net profit of Rs. 1,908.03 crore for the quarter ended June 30. ICICI Bank had reported a net loss of Rs. 119.55 crore for the corresponding period a year ago.
The Sensex and Nifty had declined 1.18 per cent each in the past week, with the benchmark indexes breaking a six-day losing streak – the longest stretch of losses in more than two months – on Friday.
Meanwhile, equities in other Asian markets drifted lower as markets anxiously counted down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.4 per cent in slow trade. Japan’s Nikkei dipped 0.5 per cent and Shanghai blue chips fell 0.2 per cent. E-Mini futures for the S&P 500 lost 0.1 per cent.
Any signals of future rate cuts by the US central bank this week will be watched closely, say analysts.
US and Chinese trade negotiators meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.
The dollar index – which measures the greenback against six major peers – hit a two-month peak of 98.010, and was last seen trading at 97.921.