Benchmark stock indices in India rose substantially to start the fresh week's trade, with all sectoral indices in the green. Strong cues from US markets too lent support to Indian indices. At 9.23 am, Sensex traded at 60,338.82 points, up 529.85 points or 0.89 per cent, and Nifty traded at 17,747.15 points, up 152.80 points or 0.87 per cent.
Other Asian markets too opened higher on Monday after the US stocks ended last week on a positive note, driven by speculation that the US Federal Reserve won't raise interest rates beyond peak levels, said Deepak Jasani, Head of Retail Research, HDFC securities. On Friday too, Indian stocks went up, partly due to fresh buying after the latest consecutive session losses.
Indian stocks had fallen for over a week on weak global market conditions over concerns that global growth will continue to slow in 2023 due to monetary policy tightening by various central banks to control inflation. "The rally in banking stocks may gather momentum taking cues from the GQG investment in four Adani stocks. The oversold IT stocks also have the potential to stage a mild rally. Oil & Gas and capital goods segments appear strong," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Last week, US-based boutique investment firm GQG Partners bought shares worth USD 1.87 billion in four Adani group companies.
The decision of GQG marks the first major investment in the Adani group since a short-seller critical report resulted in a stock rout. GQG took a 3.4 per cent stake in Adani Enterprises for around 662 million, 4.1 per cent in Adani Ports for USD 640 million, 2.5 per cent in Adani Transmission for USD 230 million, and a 3.5 per cent stake in Adani Green Energy for USD 340 million.
( With inputs from ANI )
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