Bulls dominated bears in the domestic equity market on Monday as the key benchmark index S&P BSE Sensex soared 479.28 points, or 1.77 per cent, and closed the day at 27,490.59.
On the similar lines, the National Stock Exchange (NSE) index Nifty regained the 8,200-mark by gaining 150.45 points, or 1.84 per cent, at 8,331.95.
Among the sectoral indices on the BSE, S&P BSE Oil & Gas index gained 3.52 per cent to 9,527. It was followed by S&P BSE Realty index (up 2.51 per cent to 1,612.47), S&P BSE Healthcare index (2.35 per cent to 16,567.57) and S&P BSE FMCG index (2.08 per cent to 7,765.88).
Rest all other indices also ended the day in positive zone.
G Chokkalingam, founder, Equinomics, Research and Advisory, says, "Value buying in selected counters coupled with attractive valuations, positive global cues and strong FDI inflows supported market sentiments. The market will recover around five per cent in the next few trading sessions."
Jayan Manglik, president, retail distribution, Religare Securities seconds Chokkalingam and says, "Existence of crucial support in the benchmark and oversold positions in index majors were the key triggers for Monday's rebound. Buying in auto space too supported the sentiments with most of the companies releasing better-than-expected monthly sales data for April. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally".
Overall, market breadth remained positive as 1,949 stocks were seen advancing against 833 stocks declining on the BSE. The Nifty volatility index, India VIX stood at 17.3075 up 0.47 per cent.
Among Nifty stocks, ONGC, Bajaj Auto, Cipla, Mahindra & Mahindra and HCL Technologies were the top performing stocks in Nifty with an intraday gain of 8.45 per cent, 7.26 per cent, 5.97 per cent, 5.33 per cent and 4.93 per cent, respectively.
On the other hand, Tech Mahindra, ICICI Bank and Tata Motors stood at the bottom of Nifty's performance charts. These stocks slid by 1.67 per cent, 0.42 per cent and 0.01 per cent, respectively.
Share price of Aditya Birla Nuvo surged 12.59 per cent to Rs 1,768 after the announcement made by the Aditya Birla Group that it will consolidate all its branded apparel businesses into Pantaloons Fashion and Retail.
The share price of Pantaloons Fashion and Retail gained 22.70 per cent to Rs 136.60 and hits the upper circuit in the early trading session.
For the further movement, Hiren Dhakan, associate fund manager, Bonanza Portfolio, says, "After an indication by Fed that it could hike rates in any meeting in the future, markets worldwide may discount the fact and would be seen correcting in the near future. Further, after taming of Yemen crisis, biggest global fear for the market is rate hikes by developed economies like US and Europe which are widely expected in the current year. Crude oil prices continued to show high volatility. We are bullish on the domestic equity markets and can see Nifty to trade in the range of 8,600-9,100 in the coming weeks."
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