MUMBAI: Indian stocks rose on Monday, extending gains for the second straight session led by a rise Adani Shares and the metals index as markets monitor US debt limit negotiations after they stalled last week.
The blue chip send 50 The index closed 0.61% higher at 18,314.40, while the benchmark S&P BSE Sensex rose 0.38% to 61,963.68.
Nine of the 13 major industry indices posted gains, with the metals index up over 3%.
The rise in the metals index was offset by a nearly 19% surge in Adani Enterprises Ltd. listed. The flagship company of the Adani group of companies has a weight of over 17% in the index.
All Adani Group shares rose between 5% and 20% and continued their rally on Monday after India’s Markets Regulator failed to return investigations into alleged foreign investment violations by the Adani Group
Among individual stocks, shares of Divi’s Laboratories Ltd are up over 5%, according to a global brokerage firm Jefferies upgraded the stock to buy from underperform, citing room for core earnings growth.
The heavily weighted IT index rose 2.49% and was among the top gainers in the industry, with all ten index constituents posting gains.
“A market rebound from key support levels signals upside,” said Deven Mehata, equity analyst at Choice Broking.
“Position traders can buy dips with an appropriate stop loss near the 18,050 support level.”
Asian equities rose after the People’s Bank of China left interest rates unchanged for the ninth straight month.
The focus remains on the US debt ceiling negotiations. Failure to raise the cap would result in a default and a rise in interest rates, analysts have warned.
“Investors are advised to focus on building quality stocks during the consolidation phase amid mixed global signals,” he said Ajit Mishra, Vice President of Technical Research at Religare Broking.
The blue chip send 50 The index closed 0.61% higher at 18,314.40, while the benchmark S&P BSE Sensex rose 0.38% to 61,963.68.
Nine of the 13 major industry indices posted gains, with the metals index up over 3%.
The rise in the metals index was offset by a nearly 19% surge in Adani Enterprises Ltd. listed. The flagship company of the Adani group of companies has a weight of over 17% in the index.
All Adani Group shares rose between 5% and 20% and continued their rally on Monday after India’s Markets Regulator failed to return investigations into alleged foreign investment violations by the Adani Group
Among individual stocks, shares of Divi’s Laboratories Ltd are up over 5%, according to a global brokerage firm Jefferies upgraded the stock to buy from underperform, citing room for core earnings growth.
The heavily weighted IT index rose 2.49% and was among the top gainers in the industry, with all ten index constituents posting gains.
“A market rebound from key support levels signals upside,” said Deven Mehata, equity analyst at Choice Broking.
“Position traders can buy dips with an appropriate stop loss near the 18,050 support level.”
Asian equities rose after the People’s Bank of China left interest rates unchanged for the ninth straight month.
The focus remains on the US debt ceiling negotiations. Failure to raise the cap would result in a default and a rise in interest rates, analysts have warned.
“Investors are advised to focus on building quality stocks during the consolidation phase amid mixed global signals,” he said Ajit Mishra, Vice President of Technical Research at Religare Broking.
