Closing Bell: Sensex Rises 307 Points Led by HDFC Twins

The BSE midcap and smallcap indices rose 0.43% and 0.26%, respectively. Among the sectoral indices on BSE, metal rose most at 2.03% followed by energy, oil and gas, utilities and power, which rose over 1%.

Tata Motors, Wipro, Vedanta, Coal India and Power Grid were among the top gainers on the key indices, whereas Kotak Bank, Infosys, Bharti Airtel, Hero MotoCorp. and Bajaj Finserv were among major losers.

Indian benchmark indices advanced for the fifth session on Monday led by gains in metal, banks and energy stocks. The rupee edged higher against the US dollar after India’s trade deficit narrowed from a month ago due to sharp fall in gold imports.

Shares of finance companies continued their winning steak buoyed by hopes of easing regulatory environment following the appointment of a new RBI chief. The BSE Sensex surged 307.14 points to settle at 36,270.07 led by HDFC, HDFC Bank and Reliance Industries. The 50-share Nifty Index reclaimed the 10,900-level, but ended 82.90 points up at 10,888.35.

In global markets, European stocks declined and US futures erased gains after a mixed session in Asian markets as investors looked to the US Federal Reserve with the end of a volatile year approaching. Emerging market shares and currencies were steady.

Oil prices were steady after falling 2% in the previous session, but remained under pressure amid weaker growth in major economies and concerns about oversupply.

Sensex, Nifty rise for 5th day : The BSE Sensex closed 307.14 points, or 0.85%, up at 36,270.07 and the Nifty 50 ended 82.90 points, or 0.77%, higher at 10,888.35.

Oil prices pressured by oversupply, global economic concerns

Oil prices were largely steady on Monday after falling 2 percent in the previous session, but remained under pressure amid weaker growth in major economies and concerns about oversupply. Brent crude oil futures were at $60.31 per barrel at 0722 GMT, up 3 cents, or 0.05 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $51.27 per barrel, up 7 cents, or 0.14 percent. Persistent growth in U.S. shale output continues to weigh on oil prices, while some analysts doubted that planned supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) would be enough to rebalance markets.

Kotak Bank shares fall 3%
Shares of Kotak Mahindra Bank fell over 3% on Monday after the Bombay High Court refused to grant stay on 31 December deadline given by the Reserve Bank of India for promoter stake dilution.

The next hearing will be on 17 January, Bloomberg reported. In intraday, the Kotak Bank shares declined as much as 3.2% to hit a low of Rs 1,215.10 per share. At 12.28pm, the Kotak Bank stock was trading at Rs 1223 on BSE, down 2.6% from its previous close.