In a robust start to the trading week, equity benchmark indices in India bounced back on Monday, buoyed by a rally in the US markets and robust buying activity centered around Kotak Mahindra Bank.
The early surge saw the 30-share BSE Sensex climbing 328.54 points to reach 74,206.69, while the NSE Nifty advanced by 93.45 points, settling at 22,569.30.
Kotak Mahindra Bank spearheaded the charge, witnessing a remarkable 4 percent surge following the announcement of its March quarter results. The bank reported a significant 25 percent growth in net profit, reaching Rs 5,302 crore. However, the bank's core income faced a slight setback due to narrowing interest margins.
Joining Kotak Mahindra Bank on the ascent were other major gainers from the Sensex basket, including Tata Consultancy Services, JSW Steel, IndusInd Bank, ICICI Bank, Wipro, and Axis Bank. Conversely, Titan, State Bank of India, Power Grid, and Larsen & Toubro were among the laggards for the day.
The positive momentum from the Asian markets mirrored the upbeat mood on Wall Street, which closed with significant gains on the preceding Friday.
Billionaire investor Warren Buffett's remarks further fueled optimism in the Indian market.
During Berkshire Hathaway's annual meeting, Buffett expressed interest in exploring untapped opportunities in India, underscoring the nation's immense potential as the world's fifth-largest economy.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the significance of Buffett's comments, suggesting that they could guide Foreign Institutional Investors (FIIs) towards recognizing India's growth prospects rather than merely reacting to fluctuations in US bond yields.
Moreover, Vijayakumar pointed out that the US jobs data for April, indicating a weaker labor market and a slowing economy, could potentially pave the way for a rate cut by the Federal Reserve. This outlook, coupled with the decline in the US dollar index and the 10-year US bond yield, bodes well for the Indian market.
On the global front, Brent crude prices edged up by 0.23 percent, reaching USD 83.15 a barrel.
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