MUMBAI: Reliance Industries‘ strong results announced on Friday evening, lifted investor sentiment on Dalal Street on Monday with the sensex opening over 700 points higher. After witnessing a sustained buying trend through the session, the benchmark index closed 1,233 points or 1.3% up at 75,693 points with Reliance’s stock alone adding about 750 points, more than half of sensex’s gain for the day. On NSE, Nifty closed 388 points or 1.7% at 23,441 points.Sensex closed above the 75K level after nearly two months. At the close of Monday’s session, RIL ended nearly 12% up, adding about Rs 1.8 lakh crore to its shareholders’ wealth in just one session. RIL’s 11.6% gain was its biggest single-session jump in the stock since April 7, 2020, when at the start of the Covid pandemic it had announced selling a 9.9% stake in Jio Platforms to global social media giant Meta.The day’s Rs 1.8-lakh-crore gain in RIL’s market cap was the biggest single-session gain for a company ever, data from ETintelligence showed. In July 2023, HDFC Bank’s market cap had jumped by over Rs 3 lakh crore in a single session. But that was the day after it merged HDFC, its parent, with itself and the merged stock started trading on the bourses.
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The news that markets regulator Sebi had written to govt about the abolition of the long-term capital gains tax for foreign investors added to the positive sentiment on Monday, market players said. According to Vinod Nair, head of research, Geojit Investments, the domestic markets opened the week on a firm footing, supported by better than estimated Q2 earnings by corporates and improving domestic cues.“Domestic macro indicators provided an additional boost to sentiment with Oct passenger-vehicle sales growth reflecting healthy festive demand, while gross GST collections increased, reinforcing the resilience of domestic consumption and economic activity. Global cues were also supportive, with softer crude oil prices and renewed US-Iran diplomatic efforts helping ease concerns around energy costs and geopolitical risks.“There are also talks that with the AI rally facing severe headwinds, the Indian market may again turn attractive to foreign fund managers which could, after about two years, again take leading Indian indices northward. The day’s rally was aided by a Rs 3,115-crore net buying by foreign funds, data from NSE showed. On the other hand, domestic funds were net sellers at Rs 392 crore. The day’s session added about Rs 8 lakh crore to investors’ wealth with the market capitalisation of all the companies listed on the BSE now at Rs 482.3 lakh crore. Of the 30 sensex stocks, 23 closed higher, data showed.US stocks riseWall Street’s main indices climbed on Monday as oil prices tumbled more than 7% on hopes of a US-Iran peace deal, with investors also bracing for Tuesday’s midterm elections.
