Mumbai, The Sensex and Nifty closed higher on Monday in line with global markets, which gained on the back of stimulus measures taken last week by China aimed at easing pressures on its economy owing to the trade war with the US.
The markets also gained as Indian investors picked up bank, auto and financial service stocks over expectation of further measures by the government to revive private investment.
“Buying activity in major indices like Nifty Infra, Nifty PSU banks and Nifty Auto hint at more liquidity measures by the government in the near future,” said Shrikant S. Chouhan, Senior Vice-President, Equity Technical Research.
The S&P BSE Sensex closed 163.68 points, or 0.44 per cent, higher at 37,145.45. It opened on a weak note at 36,969.48, against its Friday close of 36,981.77.
The broader Nifty closed higher on Monday by 56.85 points at 11,003.05.
“Confidence of domestic investors or mutual funds have helped the markets to close higher. Total net equity inflows increased 12.30 per cent in August 2019 which has triggered buying in the broader market,” Chouhan added.
In a bid to push investment and growth, the Chinese central bank on Friday cut lenders’ reserve requirement ratios.
