Indian equities in Monday's session tracking mixed Asian markets opened higher. Nifty at the start opened with a gap-up of 0.44 per cent or 108.8 points at 24,962.85, while the 30-share BSE Sensex was up 0.59 per cent or 476.66 points at 81,701.41.

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Bank Nifty extended its previous day's gains amid strength in heavyweights including HDFC Bank, ICICI Bank, Axis Bank, SBI and Federal Bank among others. HDFC Bank stock rallied after it posted steady Q2 show with NIMs largely remaining steady year-on-year (YoY). Global brokerage house- Goldman Sachs iterated a buy call on the stock with the target suggesting a potential upside of 28 per cent.

Last, the stock traded with gains of 2.9 per cent or Rs 48.75 at Rs 1,729.9, while at day's high it clinched levels of Rs 1,734.45 per share. The stock marked its all-time high of Rs 1,791.9 per share on July 3, 2024.

Sectorally, some of the indices namely Auto, FMCG, Media and Oil & Gas traded in the red.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services held that with the US markets setting new record highs, the global stock market rally appears intact. The steady decline in crude and stability in the US bond yields impart resilience to the stock market despite the lingering tensions in the Middle East.

The hope raised by the Chinese stimulus and the cheap valuations of Chinese stocks have the potential to sustain the ‘Sell India, Buy China’ tactical trade for some more time, added Vijaykumar.

Moreover, as the large portion of total FII AUM is accounted by the financials primarily, the sustained FII selling has rendered their valuations attractive in an otherwise overvalued market. Q2 results of leading banking names like HDFC, Kotak and Axis indicate improving prospects, noted Vijaykumar.

Meanwhile, Asian markets traded mixed with China's Shanghai Composite was last up 0.6 per cent as the China's People's Bank took to a higher rate cut than expected.