Sensex, Nifty climb to five-month highs on FII inflows, gains in FMCG shares

Mumbai: Benchmark indices Sensex and Nifty gained around half a per cent to close at nearly five-month high levels on Monday following continuous foreign fund inflows and firm trends in Asian and European markets.

Rising for the second straight day, the 30-share BSE Sensex climbed 317.81 points or 0.51 per cent to settle at 62,345.71, the highest closing level since December 14. During the day, it rallied 534.77 points or 0.86 per cent to 62,562.67.

The broader NSE Nifty gained 84.05 points or 0.46 per cent to end at 18,398.85 points, a level not seen since December 20, 2022.

Among the Sensex firms, Tata Motors jumped nearly 3 per cent after announcing its quarterly earnings. ITC, Tech Mahindra, Hindustan Unilever, Larsen & Toubro, Infosys, Tata Steel and Mahindra & Mahindra were the other biggest gainers.

Fuelled by rising domestic demand, pricing actions and easing supply chain issues, Tata Motors reported a consolidated net profit of Rs 5,408 crore for the March quarter and aims to improve the profit margins this fiscal despite headwinds.

Maruti, Tata Consultancy Services, Bajaj Finance, Asian Paints, Bajaj Finserv and Nestle were the laggards.

"Domestic benchmark indices are marching ahead driven by favourable developments such as declining inflation levels, steady foreign inflows, and in anticipation of robust earnings growth on a QoQ basis next quarter, due to drop in global commodity prices," said Vinod Nair, Head of Research at Geojit Financial Services.

The domestic CPI inflation came in better-than- expected at 4.7 per cent, and the WPI inflation decreased, reaffirming RBI’s decision to hold rate hikes, Nair added.

"The rotational buying in heavyweights from the key sectors viz. banking, financial, auto and FMCG is helping the indices maintain a positive tone despite mixed global cues. And, indications are in favour of the prevailing trend to continue," Ajit Mishra, VP - Technical Research, Religare Broking Ltd said.

In the broader market, the BSE smallcap gauge climbed 0.49 per cent and midcap index gained 0.47 per cent.

Among the sectoral indices, realty jumped 4.32 per cent, FMCG climbed 1.09 per cent, telecommunication (0.91 per cent), capital goods (0.70 per cent), IT (0.63 per cent), auto (0.63 per cent) and bankex (0.56 per cent).

Power fell by 0.72 per cent, utilities declined by 0.57 per cent, commodities (0.07 per cent) and oil & gas (0.01 per cent).

Wholesale prices in India fell for the first time in almost three years in April, as softening global commodity prices brought down food, fuel, and other input costs for producers. WPI inflation has been on a declining trend for the last 11 months and came in at (-) 0.92 per cent in April.

Foreign Institutional Investors (FIIs) were buyers on Friday as they bought equities worth Rs 1,014.06 crore, according to exchange data.

Foreign investors have shown strong buying interest in Indian equities in May and invested more than Rs 23,152 crore in the first fortnight.

In Asia, Seoul, Tokyo, Shanghai and Hong Kong markets ended trading in the green. European markets were trading mostly with gains. The US market ended marginally lower on Friday.

Meanwhile, global oil benchmark Brent crude climbed 0.24 per cent to USD 74.34 per barrel..

The rupee fell 15 paise to 82.33 against the US currency on Monday, weighed down by the strength of the American currency in the overseas market.