Market ends bullish: Sensex reclaims 54k mark, Nifty scales 16,250; metal, banking shares shines

Sensex zoomed 1,344.63 points or 2.54 per cent to end at 54,318.47 points with all constituents closing in the green. During the day, the index jumped 1,425.58 points or 2.69 per cent to 54,399.42. Nifty rallied 417 points or 2.63 per cent to end at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks. Both Sensex and Nifty logged their best single-day rally since February 15.

Tata Steel, Reliance Industries, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies and Maruti were the top Sensex gainers rising up to 7.62 percent.

"A ferocious up-move from the metal index lifted Reliance together with other sectoral indices leaving bears gasping and covering short positions and looking out for reasons for the rally," S Ranganathan, Head of Research at LKP securities said.

"On a day when WPI for April crossed 15 percent, over 2.5 percent rise in benchmark indices coupled with the breadth of the rally surprised many on the street despite the move coming after a relentless fall," Ranganathan added.

BSE mid cap and small cap indices gained 555 points and 712 points, respectively. Among BSE sectoral indices, metal, consumer durables, capital goods and banking shares were the top gainers, with their indices zooming 1376 points, 920 points, 783 points and 856 points, respectively. All 19 BSE sectoral indices closed in the green.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said, "On May 17, the index broke out from this indecisive phase on the upside. On the way up, the index crossed the 16000 mark as well as the key hourly moving averages, which reinforced the bulls further. All these observations suggest that Nifty has turned its short-term trend positive. Going ahead, 16,480-16,500 will be the initial target area from short term perspective. On the flip side, 16,100-16,000 will now act as a near-term support zone."

The market breadth was positive with 2624 shares ending higher against 714 stocks falling into the red. 124 shares were unchanged. Market cap of BSE-listed firms rose to Rs 255.55 lakh crore.

Foreign institutional investors continued to sell shares worth Rs 1,788.93 crore on Monday, according to stock exchange data.