Sensex rises nearly 400 points, Nifty above 18,100; bank stocks gain

Benchmark stock market indices opened higher on Monday, tracking positive global cues and better-than-expected December quarter results of heavyweights like Reliance.

The S&P BSE Sensex, which opened nearly 400 points higher, was lingering around the 61,000-mark, while the NSE Nifty50 jumped over 100 points at 18,128. However, broader markets encountered some weakness in early trade.

Banking and financial stocks gained sharply and provided the biggest boost to the benchmark equity markets after a series of strong quarterly results announcements by top banks and financial institutions over the weekend.

HDFC Bank, HDFC, Kotak Mahindra Bank and SBI were trading above 1 per cent, registering the biggest gains on the 30-scrip Sensex, while Ultratech Cement, NTPC and Tata Steel registered the biggest losses as metal stocks fell.

Sectorally, all the major indices were trading in green except Nifty Metal, Nifty Consumer Durables and Nifty Realty. This trend could be worrying as it indicates a decline in demand and consumer sentiment in the wake of a possible growth slowdown in FY24.

However, a key reason for the sustained weakness on Dalal Street is heightened selling activity by foreign institutional investors, who turned net sellers and sold equities worth more than Rs 2,000 crore.