Did Sensex and Nifty Surge Over 1.3% with Auto Stocks Leading the Charge?

Mumbai, August 18 (NationPress) The Indian benchmark indices opened strongly in the green on Monday, driven by a remarkable performance from auto stocks, with the Nifty Auto index soaring by 4 percent.

The BSE Sensex climbed by 1,056 points, or 1.31 percent, reaching 81,654 points. Meanwhile, the Nifty 50 increased by 354 points, or 1.44 percent, to touch 24,985.

Sector-wise, the Nifty Auto index topped the gains with a notable increase of 4 percent. The Nifty Bank also saw a rise of 695 points or 1.26 percent, closing at 56,037.15.

In addition, the Nifty Metal index rose by 1.22 percent, while the Nifty FMCG and Nifty Private Bank indices jumped by 1.36 percent and 1.62 percent respectively, with most other indices showing moderate growth.

Within the Nifty pack, Hero Motocorp led the charge with an impressive gain of 7.18 percent. Other significant gainers included Maruti Suzuki, Bajaj Finance, Bajaj Auto, and M&M. Conversely, laggards included HCL Tech, Larsen, Dr Reddy's Labs, ONGC, and TCS.

“Last week's reversal attempts halted in the 24670-720 range, preventing a bullish confirmation for the Nifty. However, 43 percent of mid-cap and 39 percent of small-cap index constituents ended above their respective 10-day SMAs, the highest since late July, indicating a potential broad market reversal,” explained Anand James, Chief Market Strategist at Geojit Investments Limited.

“A decisive move above 24,750 could pave the way for an upward trend towards 24,900 and 25,000, while immediate support is at 24,600 and 24,500, both seen as attractive zones for initiating new long positions,” added Amruta Shinde from Choice Broking.

Asian markets mostly trended upward on Monday following the conclusion of the U.S.-Russia summit without a ceasefire.

The U.S. markets experienced a slight decline on Friday after reaching a record high, as the Dow Jones Industrial Average edged up by 0.08 percent, while the Nasdaq fell 0.4 percent, and the S&P 500 decreased by 0.29 percent.

In the Asian markets this morning, China's Shanghai index increased by 1.19 percent, Japan's Nikkei rose 0.87 percent, and Hong Kong's Hang Seng Index gained 0.36 percent. However, South Korea's Kospi declined by 1.29 percent.

Reports suggest that the visit by U.S. trade representatives to New Delhi scheduled between August 25 and August 29 may be postponed.

On the last trading day, August 14, foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 1,926 crore, while domestic institutional investors (DIIs) bought equities worth Rs 3,895 crore.