Moneycontrol News

The S&P BSE Sensex rallied over 200 points to reclaim Mount 35K on Monday while Nifty50 rose for the third consecutive day in a row to close above 10,680 levels helped by short coverings.

“The Nifty rose for the third consecutive day on the back of positive cues and buying momentum. Short covering was seen being triggered in the market as the index breached the upside of 10,650-10,600\. The BankNifty edged to 26,700 and successfully closed above 26,500,” Mustafa Nadeem, CEO, Epic Research told Moneycontrol.

The market began the expiry week on a strong note with Nifty reclaiming 10,700 levels in intraday trade. The rally on the index was led by banking stocks, followed by pharma, realty, auto, as well as metal stocks.

Nifty IT that fell nearly 2 percent due to recovery in the rupee. TCS, Infosys, Tech Mahindra and HCL Technologies are down 1-4 percent.

The market breadth was firmly in favour of advances. The NSE Advance-Decline ratio stood at 3:1 while the put-call ratio improves to 1.52 from 1.47.

"Markets opened higher in a trade Monday on the back of positive global cues, this rally continued throughout the session with the markets closing up over a percent for the day. IT underperformed in trade today whereas banks held up for the session, Sun Pharma, and BPCL were the best performers of the session," Nikhil Kamath, Co-Founder, Zerodha told Moneycontrol.

"We are neutral on the indices at the current juncture and would not advocate entering fresh longs at this point, the markets at the current level still look overvalued and uncertainties over the impending elections could take the markets lower again," he said.

Sectorally, the S&P BSE Capital Goods index rose 2.5 percent, followed by the S&P Oil & Gas index which gained 2.4 percent, the S&P Healthcare index was up 2.1 percent, and the S&P BSE Banking index closed 1.1 percent higher.

Sensex top gains include stocks like Sun Pharma (up 7.1 percent), Coal India (up 3.2 percent), L&T (up 2.5 percent), Asian Paints (up 2.3 percent), and SBI (up 1.9 percent) etc.

Sensex top losers include names like TCS (down 2.3 percent), followed by Power Grid (down 2.3 percent), Infosys (down 1.1 percent), and M&M (down 1 percent).