Sensex surges 293 pts, Nifty above 10,700 as bank stocks rally
The overall market breadth remained positive as 1,390 stocks closed with gains.
The Nifty50 index closed 97 points, or 0.92 per cent, up at 10,715.50, with 37 stocks advancing and 13 declining.
The Sensex added 293 points, or 0.84 per cent, to settle at 35,208. In the index, 24 stocks closed in the green, while 7 in the red.
The overall market breadth remained positive as 1,390 stocks closed the day with gains, compared with 1,286 stocks that suffered losses.
“Market gained momentum as yields slid after RBIs open market operation, while rupee weakened further due to higher oil prices. PSU banks outperformed in expectation of stability in government bond yield with RBI’s intervention. Results are largely in line with expectation while volatility in rupee and yield and apprehensions about Karnataka election impacting the pace of rally. Additionally, investor’s sentiment improved after a tepid US job data which may slow down Fed’s rate hike trajectory,” said Vinod Nair, Head of Research, Geojit Financial Services.
Broader BSE Midcap and smallcap indices rose 0.55 per cent and 0.56 per cent, respectively, trailing benchmark Sensex.
However, investors believe that rising bond yields, falling rupee and a surge in crude oil are the concerns that market will have to deal with in the coming days.
Oil prices rose to their highest level since May 2014 on concerns that the US might re-impose sanctions on Iran.
Besides, the outcome of Karnataka election will also be a major factor that will decide market movement.
Mahindra & Mahindra, Axis Bank, Reliance Industries, ICICI Bank and Tata Steel stood among the top gainers in Sensex pack.
On the contrary, Dr Reddy's, Coal India and Tata Consultancy Services remained top losers.
Barring pharma and IT, all sectors contributed to the rally, with metal, oil & gas, consumer durables, bank, FMCG and auto at the driving seat.
Wockhardt lost nearly 8 per cent on account of poor March quarter earnings. The company reported today a consolidated net loss to Rs 154.55 crore in the March quarter.
Shares of Ujjivan Financial Services witnessed biggest fall in three months on Monday, tanking nearly 6 per cent. The stock slide is seen mainly because of worries over farm loan waiver as parties jostle to outdo each other on this count.
On the other hand, Reliance Infrastructure surged over 6 per cent after the company won order worth Rs 7,000 crore for Versova-Bandra Sea Link Project in Mumbai.
ICICI Bank also went home with gains ahead of March quarter earnings, expected later today.
Global stocks were firm in the backdrop of rising crude oil and strengthening dollar.