Mumbai, February 16 The benchmark indices, Sensex and Nifty, rebounded sharply on Monday, gaining nearly 1%, driven by strong buying in power, banking, and financial stocks.
The 30-share BSE Sensex jumped 650.39 points, or 0.79%, to close at 83,277.15, snapping its three-day decline.
The 50-share NSE Nifty advanced 211.65 points, or 0.83%, to settle at 25,682.75.
PowerGrid emerged as the top gainer in the Sensex pack, rising by 4.45%, followed by HDFC Bank, Axis Bank, NTPC, ITC, Asian Paints, Bajaj Finserv, Bharti Airtel, Adani Ports, Tata Steel, Kotak Mahindra Bank, Reliance Industries, and State Bank of India.
On the other hand, Tech Mahindra, Maruti Suzuki India, Bajaj Finance, Trent, Mahindra & Mahindra, Titan, Infosys, ICICI Bank, and UltraTech Cement were the laggards.
"After a range-bound opening, domestic markets edged higher, supported by renewed buying interest in banking and power stocks. The power sector gained on expectations of sustained demand momentum. At the same time, improved loan growth and stable asset quality bolstered confidence in banks," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
In global markets, a continued decline in the US 10-year yield following benign inflation data strengthened expectations of a Fed rate cut later this year, with investors now closely awaiting the upcoming Fed minutes for further direction.
"Meanwhile, stability in the rupee and range-bound crude oil prices ahead of US-Iran talks are offering additional support to domestic equities," Nair said.
The broader Asian markets ended on a mixed note. Hong Kong's Hang Seng benchmark rose 0.52%, while Japan's Nikkei 225 index slipped 0.22%. Markets in China and South Korea remained closed for the Lunar New Year holidays.
European markets are trading higher in mid-session deals. US equities ended on a mixed note on Friday.
Foreign institutional investors sold equities worth Rs 7,395.41 crore on Friday, while domestic institutional investors purchased stocks worth Rs 5,553.96 crore, according to the exchange data.
Brent crude, the global oil benchmark, fell 0.24% to USD 67.59 per barrel.
On Friday, the 30-share BSE Sensex tumbled 1,048.16 points to close at 82,626.76, while the 50-share NSE Nifty plunged 336.10 points to settle at 25,471.10.
