BENGALURU: India’s benchmark indexes ended higher in a choppy session on Monday, led by gains in consumer goods stocks as traders remained upbeat about a demand revival after a stable monsoon.
The Nifty 50 index settled 0.34% higher at 24,936.4 points. The S&P BSE Sensex gained 0.46% at 81,559.54 points.
Both benchmarks snapped a three-session losing streak on Monday, after swinging between 0.4% gains and losses for most of the session.
The consumer index rose 2.04% to a record high, continuing their outperformance over benchmarks. The FMCG index has gained 13.6% since the start of July compared to a 3.9% rise in the Nifty.
Thirteen of the 15 constituents of the consumer index advanced, with Hindustan Unilever’s 3% rise the most on the Nifty.
Signs of recovery in the rural economy due to a stable monsoon and the likelihood of price hikes later in the year are supporting the interest in consumer stocks, said analysts at Mirae Asset Mutual Fund.
Indian shares set to open little changed
High-weightage financials rose about 0.8%, helping the benchmarks close higher.
However, all other sectors logged losses. The broader, more domestically focussed small- and mid-caps lost about 1% and 0.3%, respectively.
“We believe that with the recent run-up in the market, most of the narrative is already priced in,” said Neeraj Chadawar and Arundhati Bagchi of Axis Securities.
“We see near-term consolidation in the market, while the margin of safety in mid- and small-caps has reduced compared to large-caps.”
Among individual stocks, Granules India dropped 3.1% after the U.S. drug regulator scrutinised one of its facilities.
PC Jeweller rose 5% after Kotak Mahindra Bank agreed to a one-time settlement on outstanding dues.
Asian shares were lower on concerns over growth slowdown in the U.S. and China, while European shares rose on the prospect of a central bank rate cut later in the week.
Source: Brecorder
