Financials lead rise in sensex, Nifty; small and mid-caps outperform

BENGALURU: Indian shares rose on Monday after easing concerns over the deposit growth at private lender HDFC Bank lifted financials, though a drop in information technology (IT) stocks on US rate concerns capped the gains.
The Nifty 50 index settled 0.21% higher at 19,306.05, while the S&P BSE Sensex rose 0.17% to 64,996.60.
The more domestically focussed mid-caps and small-caps outperformed the blue-chips, rising 0.50% and 0.74%, respectively.
“Strong retail inflows have predominantly driven the recent rise in the small- and mid-caps, drawing interest from investors seeking near-term returns,” said Raghvendra Nath, managing director of Mumbai-based investment advisory firm Ladderup Wealth Management.
Ten of the 13 major sectoral indexes logged gains, with high weightage financials rising 0.55%.
Private lender and the highest weighted Nifty 50 firm HDFC Bank added 1.04% after global brokerage Goldman Sachs reiterated “buy” and said that the concerns over tepid deposit growth in June quarter were “overdone.”
Among individual stocks, financial services firm Piramal Enterprises climbed 4.47% on its share buyback update.
Gold loan provider Manappuram Finance advanced 3.30% after the company said in a regulatory filing that the Kerala High Court quashed a lawsuit against its CEO brought by the country’s financial crime fighting agency.
Bharat Forge gained 2.59% to a record high after its joint venture won an order of 2.88 billion rupees from the defence ministry for missile systems.
Oil-to-telecom conglomerate Reliance Industries closed 1% lower after the company barely gave details of the much-anticipated initial public offerings of Reliance Jio and Reliance Retail at its 46th annual general meeting when markets closed.
IT stocks dropped 0.46% on the likelihood of prolonged high US rates. IT companies draw the bulk of their revenue from the country. US Federal Reserve Chair Jerome Powell on Friday reiterated that the central bank would make all efforts to tackle inflation.

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