Strong global cues powered the stock markets to extend their gains to another trading session, aiding the 30-share Sensex on BSE to score a 396- point jump on hectic short covering ahead of the expiry of November series.
Operators rolled over positions to next series, creating high volatility, which is expected to remain till the Futures and Options (F&O) contract ends on Thursday, brokers said.
The Bombay Stock Exchange (BSE) barometer Sensex surged sharply to end the day at 19,247.54, a gain of 394.67 points or 2.09 per cent over Friday’s close of 18,852.87.
The broader S&P CNX Nifty of the National Stock Exchange also soared by 123.10 points or 2.19 per cent to close at 5,731.70 against previous close of 5,608.60.
The market bounced by 326.55 points or 1.76 per cent on Friday after undergoing a downward correction of 1,403 points or 7.0 per cent in six-session long losing streak owing to FII negative activity in the past several days.
The revival of global trend had a positive impact on the market sentiment. Barring Shanghai Composite, which ended 1.46 per cent lower, the Hang Seng, Nikkei, Strait Times, Kospi and Taiwan weighted were up in a range of 1.66 to 4.65 per cent.
European markets too resumed strong this afternoon.
Foreign Institutional Investors (FIIs) were believed to be buyers, albeit in small quantity, during trading after a massive pullout of about Rs 1,574 crore during last week. They have withdrawn Rs 4,455 crore so far in November.
Metal sector attracted brisk activity. As a result, the BSE Metal index soared by 930.46 points or 5.61 per cent to 17,524.54.