MUMBAI: Despite a rise in crude oil prices, the benchmark indices Sensex and Nifty ended the day up for the third straight session on Monday. This was made possible by buying in shares of capital goods, banking, and auto companies.
The 30-share BSE Sensex increased 114.92 points, or 0.19 percent, to conclude at 59,106.44 points. Eight of its components closed lower, while 22 finished higher. During intraday trade, it fluctuated between 58,793.08 points and 59,204.82 points.
The larger NSE Nifty gained 38.30 points or 0.22 percent to conclude at 17,398.05 points, extending gains to a third day. Up to 32 Nifty equities concluded the day higher while 18 stocks fell.
The Sensex has increased by 1,492 points, or 2.51%, over the past three days, while the Nifty has increased by 446 points, or 2.90%.
While the uptrend was backed by gains in shares of the auto, capital goods, banking, and financial sectors, selling in shares of the IT, FMCG, and metal sectors restrained the advances in the key indices.
The surprise production cut by OPEC+ has increased concerns about inflationary pressure, which may lead central banks to remain hawkish, said Vinod Nair, Head of Research at Geojit Financial Services. “Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike,” he added.
As Saudi Arabia and other major oil producers announced a production cut of 1.15 million barrels per day from May through the end of the year, oil prices increased by around 5% to a nearly one-month high of $84.19 per barrel on Monday.
On the other hand, a monthly poll found that manufacturing operations in India reached a three-month high in March thanks to higher growth in new orders and output amid resilient demand and easing cost constraints.
World markets were neutral as concerns about rising energy prices in Europe and the US increased due to a surge in crude oil prices.
Shanghai Composite index jumped 0.7%, Hong Kong’s Hang Seng index fell 0.4%, and Tokyo’s Nikkei 225 index increased by 0.5%.
The RBI’s rate-setting panel began its three-day meeting on Monday amid anticipation that the central bank may decide to raise the benchmark interest rate by 25 basis points, which would likely be the final move in the current cycle of monetary tightening that started in May 2022.
Foreign Institutional Investors (FIIs) bought shares worth Rs 357.86 crore on Friday, making them net purchasers.