Mumbai, Feb 12: The market rebounded sharply on Monday with the rising nearly 300 points after posting 3 percent loss in previous week, ahead of December factory and January CPI inflation data due later today. The rally was driven by positive global cues. All sectoral indices ended in the green barring IT and PSU Bank, as bargain hunting continued.
The 30-share BSE Sensex rallied 294.71 points or 0.87 percent to 34,300.47 and the 50-share NSE Nifty was up 84.80 points or 0.81 percent at 10,539.80.
“We feel global cues will continue to dominate market trend, in absence of any major event. Nifty may some bounce or consolidate further however sustainability at higher level seems difficult,” Jayant Manglik, President, Religare Broking said. Traders should use further recovery to reduce existing longs and creating fresh shorts, he advised.
On the global front, European equities were sharply higher after posting their worst week in years. France CAC, Germany DAX and Britain FTSE were up 1.3-2 percent at the time of writing this article. US futures were higher by 1 percent, indicating positive opening on Wall Street while Asian markets closed mixed.
Back home, the broader markets continued to outperform frontline indices as the Nifty Midcap index gained 1.4 percent and the BSE Smallcap was up 1.6 percent on strong breadth.
About three shares advanced for every share falling on the BSE.
Meanwhile, Indian exchanges on Friday announced they would stop sharing data with foreign exchanges, but Singapore Exchange reassured international traders on Sunday that trading on products based on Indian securities would continue till August 2018.
State Bank of India lost 2.6 percent after posting net loss in Q3 on higher provisions and treasury loss, but analysts remained positive on the stock on hope of NPA recovery in FY19.
All PSU banks were strong in trade, but SBI was the only stock that pulled Nifty PSU Bank index lower by 0.2 percent. Bank of Baroda shares rallied 8 percent after stable asset quality performance while Indian Bank gained 5 percent despite 18 percent fall in profit, as asset quality improves and NII grows 30 percent.