The BSE Sensex and Nifty rebounded sharply on Monday, snapping a five-session selloff. The Sensex ended 235 points higher at 31,449 while Nifty settled at 9,794, up 83 points. Midcap and smallcap stocks which had seen sharper losses in the recent selloff bounced back strongly. The BSE midcap and smallcap indices on the BSE surged nearly 2.5 per cent. Pharma, metal and capital goods stocks lead the gains. The gains were broad-based with all the sectoral indices, barring IT, on the BSE ending in the green. Higher global markets helped lift the sentiments. A weak US inflation data, which dampened prospects of a rate hike this year, lifted sentiments leading to buying in most of the Asian shares. European markets were also higher today.
Among Nifty stocks, Cipla was the top gainer, up 5.3 per cent followed by Sun Pharma which gained nearly 5 per cent. Tata Steel, Hindalco Industries and Tata Power rose between 3.5 per cent and 4.5 per cent.
Market heavyweight RIL gained 1.7 per cent while ICICI Bank rose 1.6 per cent.
“The strength and recovery in global markets did lend some support to our indices,” said Pritesh Mehta, head of technical research, IIFL Wealth.
Real estate developer DLF Ltd surged 16 per cent after saying on Saturday it was in the final stages of talks for a transaction involving its rental unit arm. DLF had previously said it was in talks with Singapore sovereign wealth fund GIC to sell a 40 per cent stake in its property rental unit. Markets will be closed on Tuesday on account of a public holiday.