Mumbai– Indian equities closed higher on Monday, lifted by buying in IT heavyweights and optimism that the U.S. Federal Reserve will cut interest rates next month.
The Sensex gained 329.06 points, or 0.40 percent, to end at 81,635.91. The 30-share benchmark opened higher at 81,501.06, compared with Friday’s close of 81,306.85, and hit an intraday high of 81,799.06 before trading in a tight range. The Nifty 50 settled at 24,967.75, up 97.65 points or 0.39 percent.
“A wave of optimism swept through the domestic market, driven by expectations of a Fed rate cut in September and a subsequent decline in the U.S. 10-year yield,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that positive domestic factors, including potential GST rationalization to boost consumption and a favorable monsoon, could help cushion global trade uncertainty.
IT stocks outperformed, with the Nifty IT index jumping 839.20 points, or 2.37 percent. Infosys, TCS, HCL Tech, Tech Mahindra, Sun Pharma, Bajaj Finance, Tata Motors, Maruti Suzuki, Tata Steel, and Titan were among the top Sensex gainers. BEL, Asian Paints, and Bharti Airtel closed lower.
Other sectoral indices showed mixed trends. Nifty Auto rose 93.95 points, or 0.37 percent, while Nifty Financial Services and Nifty Bank ended flat. Broader indices also advanced, with Nifty Next 50 up 0.25 percent, Nifty 100 up 0.37 percent, and Nifty Midcap 100 higher by 0.12 percent.
The rupee weakened slightly, slipping 0.07 to close at 87.58 against the dollar. The dollar index rebounded toward 98.00 after Fed officials signaled a likely rate cut in September.
“While the rupee opened higher, it quickly surrendered gains as dollar strength resurfaced,” said Jateen Trivedi of LKP Securities. He added that persistent foreign investor outflows continue to pressure sentiment. Support for the rupee is expected at 87.95–88.10, with resistance at 87.25–87.50.
Looking ahead, traders said Fed Chair Jerome Powell’s policy stance, crude oil prices, and foreign institutional investor flows will be key drivers of market direction. (Source: IANS)
