The S&P BSE Sensex continued to recover, gaining 935.73 points or 1.68% on Monday to close at 56,486.02. The momentum was led by banking and IT stocks.
The NSE Nifty 50 Index was also up 240.85, or 1.45%, to close at 16,871.30 points.
“Encouraging global cues combined with bargain-hunting among index majors are driving markets higher,” said Ajit Mishra, VP, Research, Religare Broking Ltd. “Markets will start reacting to the inflation data in early trading on Tuesday,” he added.
“In addition, updates on the prevailing geopolitical tensions and the development of the global markets will remain in focus. Having passed the critical hurdle at 16,800, Nifty can extend the rebound to a 17,100+ zone. In the event of a dip, 16700 would act as immediate support. In the meantime, participants should remain focused on sector/stock selection,” he said.
Vinod Nair, Head of Research at Geojit Financial Services said: “The strategy is shifting from tactical sell to tactical buy. Investment rises as commodity prices return. FIIs sales and crude oil prices are falling, which is expected to continue due to diplomatic developments and give an advantage to the domestic market.”
“As expected, investors around the world are preparing for rate hikes. Domestic WPI has skyrocketed but the market is ignoring this as future prices may be bleak,” he said.