Markets log gains for 2nd day on buying in Reliance, HDFC Bank

Mumbai: Equity Benchmarks Sensex and Nifty closed higher for the second straight session on Monday as buying in index majors Reliance Industries, HDFC Bank and ICICI Bank helped the indices rebound from early lows amid a mixed trend in global markets.

Besides, weakening Brent crude oil prices overseas also boosted investor confidence amid simmering tensions in the Middle East, traders said.

Recovering after a sell-off in morning trade, the 30-share BSE Sensex jumped 329.85 points or 0.52 per cent to settle at 64,112.65. During the day, it rallied 401.78 points or 0.62 per cent to 64,184.58.

The Nifty advanced 93.65 points or 0.49 per cent to 19,140.90.

'Domestic equities saw some buying interest boosted by impressive corporate earnings and increasing hope that US Fed might keep the interest rate on hold in its upcoming meeting on November 1,' Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.

Among the Sensex firms, UltraTech Cement, Reliance Industries, ICICI Bank, HDFC Bank, Bharti Airtel, IndusInd Bank, State Bank of India, Tata Consultancy Services, Larsen & Toubro, Kotak Mahindra Bank and State Bank of India were the major gainers.

In contrast, Tata Motors, Maruti, Axis Bank, Mahindra & Mahindra, ITC, NTPC, Tata Steel and Bajaj Finserv were the major laggards.

In the broader market, the BSE midcap gauge gained 0.13 per cent and smallcap index advanced 0.06 per cent.

Among the indices, realty jumped 1.99 per cent, telecommunication climbed 1.52 per cent, energy (1.24 per cent), oil & gas (1.16 per cent) and bankex (0.54 per cent).

Consumer Discretionary, FMCG, auto and metal were the laggards.

'Nifty ended higher for the second consecutive session on October 30. Asia-Pacific markets started the week mixed ahead of key economic data like monetary policy decisions from Japan and Malaysia, inflation data from South Korea, and gross domestic growth figures from Taiwan and Hong Kong.

'European shares opened higher on Monday after a mixed trading session in Asia ahead of a Federal Reserve decision this week on interest rates. Israel's push into Gaza stirred fears of a wider conflict,' said Deepak Jasani, Head of Retail Research, HDFC Securities.

In Asian markets, Seoul, Shanghai and Hong Kong ended in the green, while Tokyo settled in the negative territory.

European markets were trading with gains. The US markets ended mostly lower on Friday.

Global oil benchmark Brent crude declined 1.55 per cent to USD 89.18 a barrel.

'The domestic market mirrored the upbeat European and Asian markets, as geopolitical risk in West Asia continues. Equities are experiencing a short-term bounce after the heavy selling last week, as crude moderates and Q2 results provide some relief.

'But a full containment will depend on a radical fall in geopolitical risk and global bond yield,' said Vinod Nair, Head of Research at Geojit Financial Services.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,500.13 crore on Friday, according to exchange data.

Foreign Portfolio Investors (FPIs) have pulled out over Rs 20,300 crore from Indian equities this month so far, primarily due to a sharp surge in the US treasury yield and the uncertain environment resulting from the Israel-Hamas conflict.

The BSE benchmark jumped 634.65 points or 1.01 per cent to settle at 63,782.80 on Friday. The wider gauge Nifty surged 190 points or 1.01 per cent to 19,047.25.