Indian equity benchmarks began the week in the green in a strong session on Monday, led by financial, oil & gas, IT and metal shares though losses in auto shares played spoilsport. Globally, caution persisted among investors about steep hikes in COVID-era interest rates amid sticky, red-hot inflation.

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NSE

The Sensex jumped 504.9 points or 0.9 percent to touch 59,308.3 at the strongest level of the day and the Nifty50 climbed to as high as 17,683.2, up 143.7 points or 0.8 percent from its previous close.

A total of 35 stocks in the Nifty50 basket finished the day higher. Hindalco, JSW Steel, NTPC, ITC and Sun Pharma were the top gainers.

Reliance Industries, Tata Steel, Larsen & Toubro, HCL Tech and Coal India — rising around one percent each — were also among the blue-chip stocks that rose the most.

On the other hand, Nestle, Bajaj Auto, Britannia, UltraTech, Eicher, Wipro and Apollo Hospitals — closing between 0.4 percent and 1.7 percent lower — were the top laggards.

Reliance, ICICI Bank, ITC, HDFC Bank and L&T were the biggest contributors to the gain in both headline indices.

All sectors were in demand on Dalal Street.

"Mixed jobs data from the US and a worsening energy situation in Europe have stoked concerns about the global economy, which is struggling against high inflation and recession. Strong employment in the US will give the Fed confidence to raise interest rates by another 50–75 bps," said Vinod Nair, Head of Research at Geojit Financial Services.

Overall market breadth favoured the bulls, as 2,208 stocks rose and 1,348 fell on BSE.

The road ahead

"We remain constructive on the Indian market from a medium-term perspective," Vinay Jaising, MD-Portfolio Management Services at JM Financial, told CNBC-TV18. He believes the earnings growth trajectory is positive but reasons such as high valuations and liquidity warrant caution in the short term.

Global markets

European markets fell after Russia extended a halt on gas flows on a major pipeline to the region, sparking worries about surging energy prices, following weak sessions across most of Asian markets. The pan-European Stoxx 600 was down one percent at the last count.

S&P 500 futures were up 0.3 percent. Wall Street will remain closed on Monday for the Labour Day holiday.

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First Published:Sept 5, 2022 3:36 PM IST