Sensex jumps 401 points, Nifty settles at 17,743; RVNL, HDFC Life gain up to 13%

Domestic equity markets extended the gains for the straight third session as benchmark indices settled higher on Monday. Buying in banking and financial counters pushed the indices higher. Also, earnings of behemoths like ICICI Bank and Reliance Industries supported the market sentiments.

However, traders will be keenly looking at F&O expiry and Q4 earnings from India Inc during this week for the cues. Along with this, macroeconomic data from India and across the world will also direct the markets in the coming days.

For the day, BSE Sensex surged 401 points or 0.67 per cent to settle at 60,056.10, while NSE's Nifty50 index jumped 119.35 points or 0.68 per cent to 17,743.40. Broader markets underperformed the headline peers but BSE midcap and smallcap indices settled in green. Fear gauge India VIX settled slightly higher at 11.67.

In the intraday session, after the gap-up opening, Nifty traded below 17,650 after making a day high of 17,709 in morning trade. After making a day low of 17,612 markets again recovered and closed above 17,700. After testing 200 DMA for 2-4 days, Nifty closed with a positive candle above 200 DMA, said Rohan Shah, Head of Technical Research at Stoxbox.

"The major resistance level in nifty is seen at 17,870 level. Intraday traders can look for long opportunities only above 17,800 if the closing comes above 17,800 in a 15 min chart. Traders can look for fresh shorts only if nifty breaks the 17,600 level & remains below for 15 min to ensure a short," he said.

On a sectoral front, Nifty Media index topped the losers with a one per cent fall, followed by Nifty Pharma and Healthcare indices. The Nifty Auto index also settled in red. Among the gainers, Nifty PSU Bank index rallied about 3 per cent, followed by a one per cent rise in Nifty Financial Services, Realty and Private Bank indices.

HDFC Life Insurance led the gainers in the Nifty50 pack as the stock surged over 6 per cent as the HDFC twins' merger was approved by RBI. Tata Consumer Products settled 5 per cent higher ahead of its Q4 earnings. Wipro rose 3 per cent, followed by a 2 per cent rise in Axis Bank, ICICI Bank, State Bank of India, Titan Company and Grasim.

Among the downside, Dr Reddy's Labs shed more than a per cent, followed by IndusInd Bank, which reported a muted Q4 performance. Cipla, Divis Labs, Maruti Suzuki and Sun Pharmaceuticals were among the other top losers for the day on the benchmark index.

Indian markets outperformed their Asian peers as Sensex closed above the 60,000 mark on strong buying in financial stocks after earnings from ICICI Bank and Reliance Industries matched street expectations, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

"After witnessing a sluggish trend over the past few sessions, fresh buying emerged ahead of the monthly F&O expiry later this week. While the markets may still be choppy and volatile, we may see select bouts of buying going ahead," he said.

A total of 3,755 shares were traded on BSE on Monday, of which 1,929 settled in green. 1,660 stocks ended the session with gains, while 166 shares remained unchanged. A total of 255 shares hit their upper circuit, whereas 163 tested the lower circuit levels for the day.

In the broader market, RVNL soared 14 per cent on the back of more inflow expectations. Nahar Polyfilms soared 14 per cent, while Indiabulls Real Estates rallied 12 per cent. Power Mech Projects rose 11 per cent on the back of order win. Max Ventures and Industries also settled 10 per cent each.

On the other hand, Brightcom Group hit and lower circuit of 5 per cent for the sixth straight session hitting new 52-week lows. KPR Mills and DCM Shriram shed 4 per cent, each. YES Bank dropped 3 per cent muted Q4 performance. Adani Green, Adani Total Gas and Adani Transmission declined 3 per cent each.

The positive market sentiment in the domestic market was boosted by strong earnings reported by heavyweights. This led to a reversal in the cautiousness from initial below-expectation FYQ4 results, said Vinod Nair, Head of Research at Geojit Financial Services.

"However, the weak global sentiment did raise some concerns midway. But the banking sector played a key role in this upward trend, with sector majors reporting strong earnings," he said.