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NEW DELHI: The domestic equity market took a breather on Monday to register a stellar start to the fourth quarter of the calendar year, buoyed by growth in India’s manufacturing sector activity.
BSE Sensex jumped 299 points, or 0.83 per cent to settle at 36,526.14.
The NSE counterpart Nifty reclaimed the psychological level of 11,000 and shut shop up 77.85 points, or 0.71 per cent at 11,008.30.
The gains in Sensex were led by banking and IT stocks.
In the 30-share index 22 stocks closed the day in the green.
YES Bank was the top index performer.
It was followed by TCS, HDFC, ICICI Bank, Tata Motors, Coal India and Infosys.
Among Sensex losers were -- Bharti Airtel, Axis Bank, IndusInd Bank, RIL and Kotak Mahindra Bank.
On BSE for every two stocks that gained three stocks ended lower.
Midcap and smallcap stocks underperformed Sensex.
The BSE Smallcap index lost 0.25 per cent in today's trade.
Among Nifty stocks, 34 stocks ended in the green and 16 in the red.
On NSE, only the realty index closed the day lower.
A strong performance by PSU bank, IT, media and financial stocks offset the losses logged by realty index.
The domestic equity, currency and commodities market will remain shut on Tuesday on account of Gandhi Jayanti.
Factors that led the indices higher:1.
Pick up in manufacturing sector activity: The investor sentiment amid lack of any positive trigger over the last few days got a boost from a rise in the September manufacturing activity data.
The country's manufacturing sector activity improved in September amid gains in new orders, output and employment, a monthly survey said Monday, according to a PTI report.
The Nikkei India Manufacturing Purchasing Managers' Index strengthened slightly in September to 52.2, up from 51.7 in August, as sales rose from both domestic as well as foreign clients, it added.
2.
Buying in banking and financials: The banking and financial stocks rallied in today's session after reports emerged that the government is likely to supersede Infrastructure Leasing Financial Services (ILFS) board, and may take a Satyam-like route to deal with the institution.
The government has reached NCLT and an order is likely soon, government sources told ET Now.
3.
Strong global markets: Optimism about a reconstituted free trade agreement among the United States, Canada and Mexico and what it could mean for trade relations elsewhere helped world markets kick off the fourth quarter of the year in a positive vein.
Japan's Nikkei rose 0.5 per cent to 27-year high and European stocks were up overall despite losses on Italian markets on political concerns, Reuters reported.
What experts say:Jayant Manglik, President, Religare BrokingNifty recovered strongly and settled with decent gains amid volatility.
It opened flat, but selling pressure in the select index majors pushed the index lower.
However, encouraging macroeconomic data viz.
uptick in manufacturing activities and GST collection figures, combined with recovery in the NBFC and banking majors eased the pressure.
It was broad-based recovery and others also joined in as session progressed.
Nifty may see further rebound but it's too early to call a reversal.
It has immediate hurdle at 11,100.
We've list of important data and event viz.
auto sales and RBI meet ahead thus we suggest continuing with stock specific trading approach and preferring hedged positions.
We believe participation of banking sector would play the key role ahead.
Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MFStock markets in India started the day in the negative zone and trade below the flat line for most of the day before making a sharp recovery in the last 45 minutes of trade.
Solid growth of the manufacturing sector during the latest survey period extended the current run of expansion to 14 months.
Barring the realty index, all other sectoral indices on the National Stock Exchange closed the day with gains.
