Extending gains for the second straight day, the benchmark BSE Sensex on Monday surged about 132 points to end at 34,865.10 on emergence of buying in IT stocks, even as headwinds in form of ongoing global trade tiff and rising crude prices continued to hit investors sentiments. The NSE index Nifty gained 40 points to close at 10,512.50.
Investors mood remained cautious due to fresh weakness in the rupee on rising crude oil prices and a subdued trend at other Asian markets, following worries over Sino-US trade dispute, possible slowdown in the Chinese economy and signs of tighter monetary policy by the US Federal Reserve.
“Market traded in a range bound manner and ended on a positive note. However negative sentiments over a slowing world economy due to trade war and rising cost of funds is continuing to impact the market,” Vinod Nair, Head of Research, Geojit Financial Services, said.
The rupee again breached the 74-mark against the US dollar to quote at 74.05 (intra-day) in the forex market.
Brent crude, the international benchmark, was trading higher by 0.98 per cent, to $81.79 per barrel.
“Rupee continued to be under pressure as oil prices started to move-up due to sudden spurt in tension between US & Saudi Arabia. Q2 result season began on a positive note, with Index heavy weights like IT and FMCG delivering in-line with expectation,” Nair said.