Markets recover on manufacturing sector data

Mumbai: Stock markets recovered from the budget blues on Monday with the benchmark index Sensex closing higher by 137 points after a survey showed manufacturing activity soared to an eight-year high on new orders.

The 30-share BSE Sensex rose by 136.78 points or 0.34 per cent to settle at 39,872.31 as 18 of its components ended with gains. The recovery was broad as all BSE sectoral indices barring IT and Teck closed with gains.

The 50-share NSE Nifty gained 46.05 points or 0.39 per cent to close at 11,707.90. As many as 28 Nifty stocks advanced, led by Asian Paints.

Markets had opened lower after suffering a major hit on Saturday as budget proposals failed to enthuse investors.

Stocks turned positive in the afternoon session after a monthly survey said the country's manufacturing sector activity climbed to a near eight-year high in January.

Indian markets traded volatile in the first session of the week with investors assessing the implications from budget and a sell-off in China, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.

Markets garnered support from realty, metal, private banks, FMCG and even majority of auto stocks while PSU banks and select pharma stocks received wrath, Paras Bothra, President of Equity Research, Ashika Stock Broking said, adding that majority of high dividend paying stocks were among gainers after abolition of DDT.

Among sectoral indices, BSE basic materials, power, telecom, bankex, consumer durables and FMCG indices ended with gains, while IT and teck indices settled in the red.

BSE midcap and smallcap indices rose up to 1.12 per cent. Meanwhile, bourses in Shanghai plunged nearly 8 per cent as markets opened after an extended Lunar New Year break.

Japan and South Korea ended in the red, while Hong Kong settled with gains. Brent crude oil futures fell 0.81 per cent to $56.16 per barrel.