The stock market on Monday made a smart comeback with the bellwether Sensex snapping a 4-day losing streak and ending with a gain of 268 points, on value buying in heavy weights like Reliance Industries and ICICI Bank.
The Bombay Stock Exchange 30-share benchmark Sensex, which plunged over 4 per cent in last 4 trading sessions, primarily on the housing finance racket and negative global cues, started the week on a firm note and settled at 19,405.10 - reflecting a jump of 268.49 points, or 1.4 per cent.
Witnessing a similar surge, the National Stock Exchange's wide-based Nifty finished the day with a gain of 1.36 per cent at 5,830.
Analysts attributed the market rebound to the emergence of bargain hunting following the steep fall in Sensex in the last four trading sessions.
"Last week's weakness in the market gave an opportunity to buy frontline stocks at attractive valuations. Besides, the concerns over 2G spectrum row and housing loan racket have been almost factored in by the market," Networth Stock Broking Head of Institutional Business Prakash Diwan said.
Rally on the street was led by a handsome bounce back in Mukesh Ambani-led Reliance Industries, which carries the maximum weight on Sensex. After shedding nearly five per cent in last four trading sessions, the scrip on Monday closed at Rs 998.20, up 3.7 per cent from previous close.
The rise in the counter helped the oil & gas index on BSE emerge as the best performer among the 13 sectoral indices, all of which ended in the positive terrain.
"Value buying by large institutional investors triggered the up-move in the stock," Diwan said.
Significant gains in the private sector lender ICICI Bank also witnessed a surge of 2.6 per cent to finish at Rs 1,154.05, giving strength to the broader market. Mortgage lender HDFC and the country's largest lender State Bank of India also advanced 1.39 per cent and 0.73 per cent, respectively. However, HDFC Bank bucked the trend and shed 0.35 per cent.
Of the 30 Sensex components, just seven ended the day on a weak note, with Reliance Infrastructure emerging as the biggest laggard, declining 3.17 per cent. Telecom giant Reliance Communications also dipped 2 per cent.
IT sector also saw a good trading day with the bellwether Infosys Technologies gaining 0.80 per cent and the software majors Wipro and TCS settling higher by 2.41 per cent and 2.07 per cent, respectively.
"Markets managed to recover from last week's steep losses as investors lapped up beaten down stocks. Q2 GDP data will be announced on Tuesday and could have some bearing on the market's mood," IIFL Head of Research Amar Ambani said.