Sensex, Nifty race to record closing highs as PSU bank shares shine

Benchmark Sensex and Nifty closed at new record high levels on Monday following buying in PSU bank shares and fresh foreign fund inflows.

The 30-share BSE Sensex rose by 145.52 points or 0.18% to settle at a new record high of 80,664.86. During the day, it advanced 343.2 points or 0.42% to hit a high of 80,862.54.

The NSE Nifty rallied 84.55 points or 0.35% to settle at an all-time closing high of 24,586.70. During the day, it surged 132.9 points or 0.54% to hit a new record peak of 24,635.05.

Among Sensex shares, State Bank of India was the biggest gainer, rising by 2.55% after the bank announced a hike in MCLR-based lending rates for various tenors. NTPC, UltraTech Cement, Mahindra & Mahindra, Bajaj Finance, Tata Motors, Maruti, and ITC were the other major winners.

On the other hand, Asian Paints, Tata Steel, Axis Bank, JSW Steel, Tech Mahindra, and Tata Consultancy Services were among the laggards.

"The Indian market continues to experience optimism driven by positive expectations from the upcoming Union Budget, robust FII inflows, and better-than-expected results from the IT sector.

"Additionally, the initial results from PSU banks have triggered a strong rally in the PSU index," said Vinod Nair, Head of Research, Geojit Financial Services.

Among PSU banks, Indian Overseas Bank rose by 7.35%. Canara Bank, Punjab National Bank, UCO Bank, Bank of Baroda, and Union Bank also advanced.

In the broader market, the BSE midcap gauge jumped 0.95%, and smallcap index climbed 0.21%.

Among the indices, oil & gas rallied 2.32%, energy (1.61%), realty (1.40%), utilities (1.09%), and healthcare (1%). Industrials, IT, tech, and capital goods were the laggards.

As many as 2,035 stocks advanced while 2,005 declined and 128 remained unchanged.

Among Nifty sectoral indices, Nifty PSU Bank was the lead gainer, rising by 3.11%. Nifty CPSE was up 1.56%.

Bank of Maharashtra (BoM) rallied 5.56% after the bank reported a 47% jump in net profit at ₹1,293 crore for the June quarter FY25, helped by the decline in bad loans and an improvement in interest income.

Global markets were mixed after a shooting at a rally for former President Donald Trump.

In Asian markets, Seoul and Shanghai settled higher while Hong Kong ended lower. European markets were trading lower. US markets ended in positive territory on Friday.

Foreign Institutional Investors (FIIs) bought equities worth ₹4,021.60 crore on Friday, according to exchange data.

Global oil benchmark Brent crude climbed 0.18% to USD 85.15 a barrel.

The BSE benchmark jumped 622 points or 0.78% to settle at 80,519.34 on Friday. Nifty surged 186.20 points or 0.77% to settle at 24,502.15.