IT stocks push markets up

Mumbai: Benchmark indices Sensex and Nifty logged gains for a second straight session on Monday, mainly driven by IT stocks amid positive global cues after the US took trade tariffs off the table against Mexico.

The BSE Sensex rose 168.62 points, or 0.43 per cent, to close at 39,784.52 and the NSE Nifty gained 52.05 points, or 0.44 per cent, to settle at 11,975.05.

However, concerns pertaining to liquidity situation in the NBFC sector continued to hit overall market sentiments, pulling down financial stocks and benchmark indices.

Sectorally, BSE teck, FMCG, telecom and consumer durables indices were among the top gainers, rising up to 1.61 per cent.

On the other hand, BSE oil and gas, energy, finance and banking indices fell up to 1.20 per cent. Broader BSE midcap ended marginally higher, while BSE smallcap index ended in the red.

"Sentiments were further boosted after a weak US jobs data announced on Friday raised hopes of interest rate cuts by the Federal Reserve," said Deepak Jasani, Head - retail research, HDFC securities.

Concerned over stress in the NBFC sector, RBI Governor Shaktikanta Das has said there is a need to have a fresh look at the regulation as well as supervision, and the central bank will come out with guidelines on liquidity risk management framework shortly.

Tracking positive developments on global front, Shanghai Composite Index settled 0.86 per cent higher, Hang Seng rallied 2.27 per cent, Nikkei jumped 1.20 per cent and Kospi gained 1.31 per cent. Bourses in Europe were also trading higher in their early deals.

On the currency front, the Indian rupee depreciated by 19 paise to close at 69.65 against the US dollar on Monday. Brent crude futures, the global oil benchmark, fell marginally to $63.23 per barrel.

Foreign institutional investors bought shares worth a net Rs 216.20 crore on Monday, provisional data made available with exchanges showed.