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The market rebounded sharply, with benchmark indices closing strong, led by financials, metals and realty.
After a strong opening, the market extended gains further during closing hours, with all sectors, barring IT and pharma, witnessing gains.
The BSE Sensex closed at 52,880, up 395.33 points or 0.75 per cent. It hit an intra-day high of 52,919.17 and a low of 52,604.35. The Nifty 50 closed near the day's high of 15,845.95 at 15,834.35, up 112.15 points or 0.71 per cent. It hit an intraday low of 15,762.05.
Advance decline ratio: 2:1
The breadth of the market remained positive, with 2,224 stocks advancing, 1,112 declining and 170 remaining unchanged on the BSE. As many as 667 securities hit the upper circuit and 264 lower; 580 hit their 52-week high while 31 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities, said, "Domestic equities rebounded sharply today as strong recovery in financials, realty and metals aided markets. Further, a strong rebound in Reliance Industries also extended support to the market. "
According to Modi, a sharp rise in crude prices and a strengthening dollar index have weighed on investor sentiments.
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"Resultantly, FIIs turned out to be large net sellers in last week. While improving business momentum with ease of business curbs started offering comfort, a moderate rise in daily caseload in various states and increasing positivity rates in many districts can be a fresh worry in the near term," added Modi.
Hindalco, ONGC, State Bank of India, Tata Steel and Coal India were the top gainers on the Nifty 50, while Tech Mahindra, HDFC Life, BPCL, Dr Reddy and HCL Tech were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestic indices witnessed a gap-up opening and maintained the levels despite mixed sentiments seen in global equities. In line with contraction in manufacturing PMI, India's Service PMI for June fell to 41.2 against 46.4 in May, having no negative impression on the market."
"A strong US job data signalled that the economy is recovering at a steady pace which eased concerns over an earlier-than-expected interest rate hike by the Fed," added Nair.
IT stocks lose shine
On the sectoral front, all indices except Nifty IT and Nifty Pharma closed in the green. IT stocks remained under pressure through the day, with Nifty IT closing 0.20 per cent lower. Nifty pharma ended flat, down 0.01 per cent.
However, financials, metals and realty stocks rallied. Nifty Bank and Nifty Financial Services were up 1.16 per cent and 1.05 per cent. Nifty Private Bank was up 1.05 per cent while Nifty PSU Bank was up 0.93 per cent. Nifty Metal was up 1.16 per cent.
Nifty realty recorded the highest gains and closed 2.73 per cent higher.
Broader indices
Broader indices also closed in the green, witnessing buying momentum.
Nifty Midcap 50 was up 1.06 per cent, while Nifty Smallcap 50 was up 0.48 per cent.
The S&P BSE Midcap was up 0.35 per cent, while the S&P BSE Smallcap was up 0.78 per cent.
The volatility index softened 0.18 per cent to 12.07.
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