Sensex ends 478 points higher, Nifty above 18,000

Benchmark indices erased early losses to end higher amid volatility on Monday.

Market opened on a weak note amid mixed global cues. However, indices erased early losses on sustained buying across multiple counters including IT, metals, consumer durables and financials, barring private bank stocks. Private bank and pharma stocks remained under pressure through the day.

After hitting a low of 59,779.19, the BSE Sensex recovered sharply to close at 60,545.61, up 477.99 points or 0.80 per cent. It recorded an intraday high of 60,609.16 and a low of 59,779.19. The Nifty 50 closed at 18,068.55, up 151.75 points or 0.85 per cent. It hit an intraday high of 18,087.80 and a low of 17,836.10.

Breadth turns positive

The market breadth turned positive with 1,808 stocks advancing on the BSE, 1,551 declining and 191 remaining unchanged. Furthermore, 395 stocks hit the upper circuit as compared to the 201 stocks that were locked in the lower circuit. Besides, 272 stocks touched a 52-week high level and 18 touched a 52-week low.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock, said, “Indian markets opened on a mixed note after a long holiday week following mixed Asian market cues as investors digest China trade data. During the afternoon session markets erased initial losses and traded in green terrain.

“Traders took support of the statement by industry chamber PHDCCI that India's economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments. However, upside remain capped as western markets opened flat as investors await inflation readings in U.S. slated to be released on Tuesday.”

Titan, IOC, Bajaj Finserv, Ultratech Cement and Tech Mahindra were the top gainers on the Nifty 50 while IndusInd Bank, Divi’s Lab, Mahindra & Mahindra, State Bank of India and Hindalco were the top laggards.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Despite a muted opening, domestic indices erased its early losses boosted by favourable macros like fuel rate tax-cut, improved PMI numbers and higher festive season sales numbers.”

“On the global front, the Fed policy announcement was in line with the market view to start with gradual tapering which boosted the sentiments of emerging markets. Additionally, investors remained a bit cautious ahead of the US consumer data, which is to be released later this week," added Nair.

S Ranganathan, Head of Research at LKP Securities, said, "In a volatile session of trade, Bulls emerged strong with several stocks across Cement, Consumer Durables & PSU names witnessing good buying interest from Investors."

Private bank stocks, pharma under pressure

On the sectoral front, a majority of indices closed in the green.

Pharma and private bank stocks remained under pressure while IT, metals consumer durables, financials, barring private bank stocks, oil & gas and realty gained.

Nifty IT was up 1.27 per cent while Nifty Metal was up 1.45 per cent at closing. Nifty Consumer Durables was up 2.07 per cent. Nifty Realty was up 1.38 per cent. Nifty Oil & Gas was up 1.79 per cent.

Nifty Financial Services and Nifty PSU Bank were up 1.17 per cent and 2.15 per cent, respectively.

Meanwhile, Nifty Bank was down 0.34 per cent and Nifty Private Bank was down 0.95 per cent.

Nifty Pharma and Nifty Healthcare Index were down 0.70 per cent and 0.64 per cent, respectively.

Broader indices

Broader indices also closed in the green.

Nifty Midcap 50 was up 1.59 per cent while Nifty Smallcap 50 was up 1.21 per cent. The S&P BSE Midcap was up 1.29 per cent while the S&P BSE Smallcap was up 0.78 per cent.

The volatility index rose 3.76 per cent to 16.34.

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