Markets rally despite weak global trends

Mumbai: Equity benchmark Sensex rallied 478 points on Monday after gains in index majors HDFC, Infosys and Kotak Bank despite a negative trend in the global markets. After a volatile session, the 30-share index ended 477.99 points or 0.80 per cent higher at 60,545.61. The broad-based Nifty surged 151.75 points or 0.85 per cent to 18,068.55 as 40 of its constituents ended with gains. Titan was the top gainer in the Sensex pack, rising over 4 per cent, followed by UltraTech Cement, Bajaj Finserv, Tech Mahindra, Kotak Bank and HDFC. On the other hand, IndusInd Bank was the top loser in the Sensex pack, tanking over 10 per cent after the lender admitted to having disbursed 84,000 loans without customer consent in May owing to a "technical glitch."M&M, SBI, Maruti, Asian Paints and TCS were also among the laggards.

Vinod Nair, Head of Research at Geojit Financial Services said, "Despite a muted opening, domestic indices erased early losses boosted by favourable macros like fuel rate tax-cut, improved PMI numbers and higher festive season sales numbers.

"On the global front, the Fed policy announcement was in line with the market view to start with gradual tapering which boosted the sentiments of emerging markets. Additionally, investors remained a bit cautious ahead of the US consumer data, which is to be released later this week." Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares said that traders took support of the statement by industry chamber PHDCCI that India's economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments."However, upside remain capped as western markets opened flat as investors await inflation readings in US slated to be released on Tuesday." Sectorally, BSE oil and gas, consumer durables, power, capital goods and utilities indices rose up to 2.29 per cent, while healthcare and bankex ended in the red.

Broader midcap and smallcap indices jumped up to 1.20 per cent.

S Ranganathan, Head of Research at LKP Securities, "In a volatile session of trade, bulls emerged strong with several stocks across cement, consumer durables & PSU names witnessing good buying interest from investors." Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul ended with losses, while Shanghai was positive. Stock exchanges in Europe were largely trading in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 1.15 per cent to $83.69 per barrel.