Sensex surges 601 points to close at 39,575; Nifty settles above 11,650

NEW DELHI: Equity indices finished higher for the fourth straight session on Tuesday with the benchmark BSE sensex rising more than 600 points led by gains in banking, financial stocks amid positive global sentiments.
The 30-share BSE index surged 601 points or 1.54 per cent to close at 39,575; while the broader NSE Nifty settled 159 points or 1.38 per cent higher at 11,662.
HDFC, M&M, IndusInd Bank, Asian Paints, Bajaj Finance and HDFC Bank were the major gainers in the sensex pack rising as much as 8.35 per cent.
While Tata Steel, Nestle India, Sun Pharma, L&T, NTPC and Reliance were the only losers falling up to 1.14 per cent.
On the NSE platform, sub-indices Nifty Financial Services, Bank, Private Bank and Realty gained up to 3.15 per cent.
According to traders, signs of US President Donald Trump’s improved condition boosted markets in Asia following an overnight rally on Wall Street. In Europe, sentiment was less upbeat.
Traders said that investor sentiments got a boost after the government’s decision to name nominees to the Reserve Bank of India’s (RBI’s) monetary policy committee and HDFC Bank reporting strong loan growth.
Private lender HDFC Bank on Monday said that its advances for the second quarter rose 16% over the previous year, while deposits increased by 20%. The growth is much higher than the banking sector, which recorded a 12% year-on-year growth in deposits and 5.3% in advances until September 11.
Investors also await the outcome of RBI’s delayed monetary policy meet which is now scheduled to be held from October 7 to October 9.
The RBI is widely expected to keep key rates unchanged at the upcoming monetary policy review, as it attempts to manage high retail inflation while keeping its policy stance accommodative.
“We do not believe the new appointments dramatically change the near-term monetary policy outlook,” Rahul Bajoria, chief economist at Barclays, told news agency Reuters.
On the currency front, rupee pared initial gains and settled for the day 17 paise lower at 73.46 (provisional) against the US dollar.
Meanwhile, exchange data showed that foreign investors bought equities worth Rs 236.71 crore in Indian market on Monday.
(With agency inputs)

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