Indian equity benchmarks resumed their upmove on Monday after a day's breather helped by buying in IT and select financial shares, as Dalal Street overlooked weakness in global markets. Losses in metal and PSU bank stocks, however, kept the upside in check. Weakness in broader markets also hurt investors' sentiment.
The S&P BSE Sensex index closed 125.13 points or 0.23 percent higher at 54,402.85, and the broader NSE Nifty50 benchmark settled at 16,258.25, up 20.05 points or 0.12 percent from its previous close.
During the session, the 30-scrip gauge came within 132.51 points of an all-time high of 54,717.24 registered last week.
Among blue-chip stocks, M&M, Tech Mahindra, Axis Bank, Bajaj Finserv, IndusInd Bank, Cipla, Nestle, Dr Reddy's and Infosys, closing between 0.86 percent and 2.23 percent higher, were the top gainers.
On the other hand, Tata Consumer, Coal India, Adani Ports, Bharti Airtel, SBI Life, JSW Steel, Hindalco and Tata Steel, finishing with cuts of between 1.42 percent and 1.98 percent, were among the 27 laggards in the Nifty50 index.
Infosys, ICICI Bank and Axis Bank were the biggest movers for Sensex.
Broader markets underperformed their larger counterparts, with the Nifty Midcap 100 and Smallcap 100 indices dropping 0.73 percent and 0.91 percent respectively.
IRCTC, IPCA Labs, Laurus Labs, BASF and PVR -- rising between 3.49 percent and 7.80 percent -- were among the top gainers in broader markets. On the other hand, Dhani Services, SAIL, Balkrishna, Nalco and Future Retail, settling between 4.50 percent and 11.68 percent lower, were among the top losers.
"There is froth in the broader markets. Large-caps are likely to outperform mid-small-caps in the coming days," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Mahindra & Mahindra shares rose 2.18 percent after the management's positive commentary on the tractor segment. Last week, Mahindra & Mahindra and Mahindra Vehicle Manufacturer reported a nearly 24 times year-on-year jump in net profit to Rs 934 crore for the June quarter, though missing Street estimates.
MRF shares ended 0.87 percent higher at Rs 79,850 apiece on BSE after the tyre maker reported a 12 times jump in net profit for the April-June period.
PVR and IRCTC shares jumped after the Maharashtra government eased Covid-19-related restrictions.
Nalco shares tumbled by Rs 10.95 to Rs 82.70 apiece on BSE after the PSU aluminium company reported a weak set of quarterly earnings.
Analysts awaited more quarterly earnings from India Inc for cues.
Crude oil prices fell 4 percent, extending the steep losses last week, amid concerns that new Covid-related restrictions in Asia, especially China, could slow a global recovery in fuel demand. Brent crude futures were last seen trading lower by $2.82 at $67.88 per barrel on Monday after logging their biggest weekly loss in four months.
Lower oil prices are positive for countries such as India, the world’s third biggest crude importer and consumer.
"Faster spread of infections in many countries including US and the consequent restrictions on movement have softened crude prices pushing Brent crude below $70. This will further strengthen India's improving macros," said Vijayakumar.
Overall market breadth favoured bears with an advance-decline ratio of 1:2, as 858 stocks rose on NSE against 1,771 that fell. On BSE, 1,379 scrips advanced while 2,168 declined.
Meanwhile, equities in other Asian markets wobbled amid thin trade. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.5 percent.
European share markets started the day on a weak note, as the dollar reached four-month highs on the euro after an upbeat US jobs report lifted bond yields.The United Kingdom's FTSE benchmark was down 0.34 percent in early trade.
S&P 500 futures traded 0.12 percent lower, indicating a sluggish opening on Wall Street later in the day.
