Sensex surges 500 pts; Nifty also hits its high

Mumbai: On Monday, the Sensex and Nifty benchmark indices started with a significant increase due to a tentative deal reached by the US over the weekend to raise the debt ceiling. This agreement is expected to prevent a potential default. The BSE Sensex surged by 500 points, reaching 63,000, while the NSE Nifty50 gained 137 points, reaching 18,640. On Friday, the NSE closed at 18,499.35 while the BSE closed at 62,501.69.

Position of stocks listed in BSE

Companies like M&M, HDFC Bank, IndusInd Bank, Ultratech Cement, HDFC, Tata Motors, and Nestle led the gains on the Sensex. On the Nifty, SBI Life and Hindalco were the top performers. However, ONGC, Sun Pharma, and Power Grid experienced 0.2-3 percent declines, becoming the major drags on the frontline.

The broader markets also experienced gains in line with the benchmarks. The BSE MidCap and SmallCap indices rose by up to 0.5 percent.

Performance of markets worldwide

In the global market, Asian markets showed positive movement, with Japan's Nikkei leading the way with a two percent increase. Hang Seng, Strait Times, S&P/ASX 200, and Kospi also rose by 0.2-1 percent. US stock futures were up by 0.2-0.5 percent following a 1-2 percent cash market rally on Friday. The debt deal, pending final approval by lawmakers in Congress, will suspend the USD 31.4 trillion debt ceiling until January 2025. As part of the agreement, non-defence discretionary spending in 2024 will be capped at 2023 levels and will see one percent increase the following year.

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