Metal and banking stocks lift Sensex by 402 points

Domestic equity markets extended gains for the second consecutive trading session on the back of positive global cues, short coverings and buying in banking and auto stocks. The key benchmark index Sensex rose 401.91 points, or 1.48 per cent, to 27,507.30. The Nifty index on the National Stock Exchange also gained 1.63 per cent to 8,325.25

Among the BSE sectoral indices, the S&P BSE Auto index rose by 2.52 per cent to 18,832.17, followed by S&P BSE Metal index (up 2.52 per cent to 10,202.97), S&P BSE Bankex (up 2.4 per cent to 20,878.22), S&P BSE Consumer Durables index (up 2.27 per cent to 10,186.21), S&P BSE Healthcare index (up 1.69 per cent to 16,499.94) and S&P BSE Power index (up 1.56 per cent to 2,063.57). However, the S&P BSE FMCG index ended the day at 7,725.11, down 0.32 per cent against its previous close of 7,750.07.

Prakash Diwan, director, Altamount Capital Management said, "Short coverings, positive global cues and some buying interest in banking, metal and auto stocks uplift market mood on Monday."

Alex Mathews, head of research, Geojit BNP Paribas Financial Services, says, "Nifty finally moved and closed above its 200-day moving average at 8,276 on the back of strong buying in banking and metal sectors. Public sector banking stocks were in good demand in Monday's trading session; metal stocks were also trading higher on Chinese rate cut. Nifty is likely to consolidate at around 8,250-8,350 levels in the days to come."

The market breadth remained positive on the Bombay Stock Exchange as 1,755 stocks ended with gains, while 973 closed with losses. Advances to declines ratio for Nifty remained 48:2 for the day.

Among Nifty stocks, Bank of Baroda, Vedanta, State Bank of India, UltraTech Cement and Hero MotoCorp were the top gainers with an intraday gain of 16.82 per cent, 5.23 per cent, 5.17 per cent, 4.63 per cent and 3.88 per cent, respectively.

On the other hand, Hindustan Unilever and ITC remained at the bottom of Nifty's performance charts. These stocks fell 3.55 per cent and 0.61 per cent, respectively.

According to the website of NSDL, foreign portfolio investors stood net sellers in the capital market, sold shares worth Rs 348.90 crore on Friday.

Apollo Tyres, Ashok Leyland, Motherson Sumi, Nilkamal, Sobha Ltd may announce their earnings on Monday.

Among the major market moving event, Bank of Baroda surged more than 17 per cent intraday on the back of significant improvement in asset quality. Gross bad loans as a percentage of total loans stood at 3.72 per cent in Q4 against 3.85 per cent in the previous quarter.

Asian markets Nikkei 225, Hang Seng and Shanghai closed in green and rose 1.25 per cent, 0.51 per cent and 3.04 per cent, respectively.