Sensex rallies 205 pts, Midcap at record close

 

Mumbai, Dec 11: The market started off the week on a positive note Monday as the Sensex rallied more than 200 points, taking the total three-day gains to 850 points. The rally was driven by positive global cues, taking lead from Wall Street after stronger-than-expected jobs report.
All sectoral indices ended in green barring realty. Nifty IT, FMCG, Pharma and PSU Bank gained around 1 percent each; followed by bank, auto, metal that settled trade with mild gains.
PSU banks, HDFC twins and ITC led the market higher but gains were capped by Reliance Industries (down 0.5 percent).
The market rallied for the third consecutive session today as the 30-share BSE Sensex gained 205.49 points at 33,455.79 and the 50-share NSE Nifty closed above the 10,300-mark, rising 56.60 points to 10,322.30.
The sharp upside may be indicating that equity benchmarks may have started pricing in early the outcome of Gujarat assembly elections that is scheduled to be announced on December 18. The first phase of polling ended on December 9 and the second phase will take place on December 14.
Recent surveys suggested that the BJP is likely to get majority in Gujarat, though there could be some loss of votes to Congress due to demonetisation and GST, experts said.
Federal Reserve policy meeting, which will begin on Tuesday midnight, is another key event that market is watching closely. Experts largely expect the rate hike by 25 basis points but the key to watch out for would be commentary.