Key equity indices set off the week with a bang, propelled by the nuclear trade ban waiver that India got on Saturday from the Nuclear Suppliers Group. Upbeat investor sentiments got another fillip after the US moved to take control of top mortgage firms Fannie Mae and Freddie Mac, triggering a global stocks rally.
Sensex rose by 461.14 points, or 3.18%, to end at 14,944.97 points on Monday. The S&P CNX Nifty gained 130 points, or 2.99%, to close at 4,482.30 points. The end of the Singur crisis also lifted the investor sentiments.
The markets opened with a positive gap at 14,978.24 points and touched a high of 15,107.01 points and a low of 14,917.06 points intra-day. But the markets also witnessed some selling pressure at higher levels towards the end of the day, said a dealer.
Amitabh Chakraborthy, president-equities at Religare Securities, said, ?We believe that this is a short-term rally and markets are not still bottomed out.?
Barring the index for the consumer durables industry, all sectoral indices of BSE gained on Monday. Foreign institutional investors (FIIs) were net buyers of equities worth Rs 253.43 crore while domestic institutional investors were net sellers to the tune of Rs132.62 crore.
Alex Mathew, head of research at Geojit, said, ?The rally that we saw today (Monday) can continue for some more days with the Nifty having minor resistance at 4,550, and if it trades above this level for some time, then we may see Nifty testing 4960.?
The breadth of the market remained positive throughout the day. Out of the 2,768 stocks traded on BSE, 1,665 stocks ended in the green, 1,034 stocks in the red and 69 stocks remained unchanged. ?We might see some new inflows in a few months from FIIs, which were till recently net sellers. We assume the markets will rebound and the growth story of Indian markets still remains intact. But we might see some major corrections in the short-term,? said Chakraborthy.