D-Street snaps eight-week losing streak
Sensex closed at 72,382.47, up 472.77 points or 0.66%, while the Nifty50 ended at 22,555.75, higher by 133.80 points or 0.60%
Equities rebounded on Monday, ending an eight-week losing streak, as softer-than-expected US jobs data reduced expectations of a Federal Reserve rate hike and a drop in crude oil prices provided support. The Nifty climbed 0.60 per cent, while the Sensex closed 0.66 per cent higher. Bank Nifty also gained 0.48 per cent. Positive global cues and falling international crude oil prices were cited as key factors in the market turnaround.
IT stocks experienced profit-taking ahead of TCS' second-quarter results, but the broader market participated with the Nifty Midcap 100 and Smallcap 100 both rising. FMCG led the sector gains, followed by Consumer Durables, PSU Banks, Media, and Realty. Select banks saw gains up to 5 per cent after quarterly updates. Despite the gains, IT remained under pressure, and Healthcare and Pharma faced declines.
US September non-farm payrolls came in softer than expected, dampening the chance of an immediate Fed rate hike. The global backdrop improved, with Brent crude easing to $101-102 a barrel. However, elevated US 10-year Treasury yields and foreign selling pressures continued to weigh on domestic equities. The rupee showed support from softer crude prices and lower expectations of near-term US monetary tightening.
Markets now await the RBI's monetary policy decision on Wednesday, as well as the GST Council meeting.
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