BENGALURU, Sept 9 (Askume) – India’s benchmark index ended higher on Monday in volatile trade, led by consumer goods stocks, as traders remained optimistic about a recovery in demand following a stable monsoon.
The Nifty 50 index (.NSEI) rose 0.34% to close at 24,936.4 points. The S&P BSE Sensex (.BSESN) rose 0.46% to close at 81,559.54 points.
Both benchmarks ended a three-session losing streak on Monday, spending most of the session trading 0.4% higher or lower.
The consumer index (.NIFTYFMCG) rose 2.04%, hitting a record high and continuing to outperform the benchmark. The FMCG index has gained 13.6% since the beginning of July, while the Nifty index has gained 3.9%.
Thirteen of the 15 components of the consumer index rose, with Hindustan Unilever (HLL.NS) stock gaining the most on the Nifty index by rising 3%.
Analysts at Mirae Asset Mutual Fund said signs of improvement in the rural economy due to stable monsoon as well as the possibility of higher year-end prices are driving consumer interest in stocks.
Heavy-weighted financial stocks (.NIFTYFIN) rose nearly 0.8%, helping the benchmark index close higher.
All other industries, however, suffered losses. The broader, more domestically focused small-cap sector (.NIFSMCP100) and mid-cap stocks (.NIFMDCP100) fell 1% and 0.3%, respectively.
“We believe that with the recent surge in the markets, most of the key points have been identified,” said Neeraj Chaddawar of Axis Securities.
“We see markets consolidating in the near term, and the margin of safety for small- and mid-cap stocks has narrowed compared to large-cap stocks.”
Among stocks, Granules India (GRAN.NS) fell 3.1% after US drug regulators investigated one of its factories.
PC Jeweller (PCJE.NS) rose 5% after Kotak Mahindra Bank (KTKM.NS) agreed to a one-time settlement of dues .
Asian shares fell on concerns about slowing economic growth in the United States and China, while European stocks rose on the prospect of central bank interest rate cuts over the weekend.
(This story has been republished to remove analyst’s name in paragraph 9)
