Indian equity benchmarks rose sharply at the start of the Muhurat trading hour on Monday as part of the hour-long window on Diwali, with investors placing bets on the exchange systems available between 6.15 pm to 7.15 pm, following their predictions of what stocks would be profitable and auspicious.
In the first session of Samvat year 2079, according to the Hindu calendar, the 30-share BSE Sensex index rose 635.12 points to 59,942.27, and the broader NSE Nifty-50 index advanced nearly 200 points to trade above 17,750.
Including telecom, financial services, banking, industrials, and power, all BSE sectoral indices were up.
Brokers reported that as soon as investors opened their accounts for the first session of Samvat 2079, purchasing activity increased.
All Sensex shares, with the exception of Hindustan Unilever, were trading in the green.
With a 2.10 percent surge, L&T headed the group of gainers, followed by ICICI Bank, Nestle India, HDFC, HDFC Bank, NTPC, and PowerGrid.
Both equity benchmarks rose on Friday to extend gains for the sixth straight session, defying a broader global risk assets’ sell-off.
Due to Diwali, Indian stock exchanges were closed on Monday, with normal trading starting on Tuesday.
On Monday, global stocks largely extended the rebound that started late in New York on Friday on news that the Federal Reserve was contemplating when to reduce the rate of rising and possibly announce a step back at its November meeting,
Fed officials, including Mary Daly of the San Francisco Fed and James Bullard of the St. Louis Fed, said that any policy discussion at the November meeting would focus on the rate of tightening.
“What this means for the markets is that the rates and FX markets could now become more sensitive to incoming economic data and any evidence of financial market stress,” MUFG Head of Research Derek Halpenny told Reuters.
The STOXX 600 increased on the day as European indices advanced ahead of a week dominated by earnings. Emerging market stocks declined, mostly due to a significant sell-off in China.
Chinese blue chips sank by roughly 3 per cent. In comparison, Hong Kong shares declined 6.4 per cent, marking the biggest single-day fall since the financial crisis, after Xi Jinping was elected to a record-breaking third term as president and chose a top executive body packed with supporters.