Mumbai, Mar 26: Bulls were back with vengeance on Monday as the market started off the expiry week on a strong note. The BSE Sensex rallied more than 500 points intraday despite trade war fears, driven by bargain hunting in most beaten down banking & financials sector.
The frontline indices were sluggish in morning but gained solid strength in second half of the session and recouped its previous trading day’s losses. The market breadth, however, was in favour of declines as about 1,533 shares declined against 1,224 rising shares on the BSE.
All sectoral indices, barring IT, participated in the rally. The Nifty PSU Bank index jumped 5 percent followed by Bank, Auto, Financial Services, FMCG, Metal, and Realty that gained 1-2.5 percent whereas IT lost 0.6 percent.
The 30-share BSE Sensex was up 469.87 points or 1.44 percent at 33,066.41 while the 50-share NSE Nifty closed above 10,100 levels, rising 132.65 points or 1.33 percent to 10,130.70.
“Bargain hunting combined with short covering helped the index to move higher. It’s normal to such swings during the F&O expiry week and thus traders should prefer hedged positions,” Jayant Manglik, President, Religare Broking said.
Also, keep a close eye on global cues as they’re largely dictating Indian market trend at present, he added.
On the global front, Asian markets ended mixed after news emerged that the United States agreed to exempt South Korea from steel tariffs. Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi rose more than 0.7 percent while China’s Shanghai and Australia’s ASX 200 gained more than half a percent.
European markets traded higher, though lingering fears of a tit-for-tat global trade war appeared to cap gains. France’s CAC, Germany’s DAX and Britain’s were up 0.3-0.7 percent at the time of writing this article.
Back home, banking & financials space contributed 60 percent to Nifty’s gains. HDFC Bank, HDFC, SBI, ICICI Bank, Yes Bank, Bajaj Finance and Axis Bank rallied up to 6 percent.
L&T, Reliance Industries, Maruti Suzuki, ITC, HUL, Tata Steel and Bharti Airtel among others gained up to 3 percent whereas Infosys, IOC, HPCL, Wipro and GAIL were down up 4 percent.
CESC was up 7.65 percent on media reports that National Company Law Tribunal may have given approval to its demerger.