Sensex, Nifty Close At Two-Week High As ICICI Bank, L&T, HDFC Bank Lead: Market Wrap

India’s benchmark stock indices extended gains for the third straight day to close at a two-week high on Monday, led by advances in ICICI Bank Ltd., ITC Ltd., and HDFC Bank Ltd.

Energy, metal, and realty sectors rose, whereas public sector unit banks and consumer durables were under pressure. Nifty 50 was trading above the 19,300 level, whereas Sensex was beyond the 64,700 mark. Intraday, Sensex topped the 64,900 mark, while Nifty 50 rose above the 19,400 level, the highest since Oct. 23.

The current market structure indicates that the pullback rally may continue as long as the index is trading above 19,150 and 63,500 levels, respectively, said Shrikant Chouhan, head of equity research at Kotak Securities Ltd. “For those who hold the positions for a long time, it is advisable to take partial profits between 19,350 and 19,400 levels. Buying is advisable between 19,270 and 19,230 levels.”

The S&P BSE Sensex closed 595 points, or 0.92%, higher at 64,958.69, while the NSE Nifty 50 gained 181 points, or 0.94%, to end at 19,411.75.

“Nifty is expected to rise in sync with global stock markets, benefitting from several positive catalysts. These factors include market optimism that the Federal Reserve won’t raise interest rates, sluggish U.S. job growth, and the calming effect of India’s VIX at 10.88 levels,” said Prashanth Tapse, senior vice president (research), Mehta Equities Ltd. These optimistic indicators suggest a promising outlook for Nifty’s performance in the near future, he said.

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