Sensex, Nifty Snap Three-day Losing Streak

(RTTNews) - Indian shares closed higher on Monday to snap a three-day losing streak after the U.S. Senate voted 60-40 to end the longest-running government shutdown, which entered its 40th day on Sunday.

The bipartisan legislation, which would fund most federal agencies through January and guarantee back pay for federal employees affected by the closure, would now go to the House of Representatives for consideration.

A weaker dollar in international markets on rising Fed rate cut bets and signs of easing producer deflation in China also helped underpin investor sentiment.

The benchmark BSE Sensex hit an intraday of 83,754.49 before paring gains to end up 319.07 points, or 0.38 percent, at 83,535.35.

The broader NSE Nifty index settled 82.05 points, or 0.32 percent, higher at 25,574.35, after having hit a high of 25,653.45 earlier, tracking firm cues from global markets.

The BSE mid-cap index gained 0.6 percent, but the small-cap index dipped 0.3 percent. The market breadth was weak on the BSE, with 2,371 shares declining while 1,966 shares rose and 176 shares closed unchanged.

Infosys, TMPV, Asian Paints, Bajaj Finance, HCL Technologies and Infosys rose 1-2 percent while Trent plunged 7.4 percent after Q2 results showed the slowest revenue growth since 2021.

Mahindra & Mahindra, UltraTech Cement, Power Grid Corp and Eternal all fell around 1 percent.

Shares of eyewear retailer Lenskart fell 11 percent in early trade on their debut before recovering those losses to end marginally higher above the issue price of Rs. 402 a share.

Globally, Asian and European markets edged higher on optimism that an end to the historic U.S. government shutdown could be in sight.

Gold prices rose nearly 2 percent to hit a two-week high as signs of a weakening U.S. economy fueled rate cut bets.

Oil also traded higher on optimism that a deal to reopen the U.S. government would help lift demand in the world's top oil consumer.