Stock markets rebound, Sensex rallies 356 points on buying in bluechips, political cues

Mumbai: Benchmark Sensex rebounded by 356 points, while the Nifty settled above 24,100 on Monday, as buying in blue-chip stocks and state poll results trending in line with market expectations lifted investor sentiment.

The 30-share BSE Sensex climbed 355.90 points or 0.46 per cent to settle at 77,269.40. During the day, it jumped 997.25 points or 1.29 per cent to 77,910.75.

The 50-share NSE Nifty rallied 121.75 points or 0.51 per cent to end at 24,119.30.

From the 30-Sensex firms, Adani Ports, Hindustan Unilever, Reliance Industries, Larsen & Toubro, Eternal and Maruti were among the biggest gainers.

Bharti Airtel, Kotak Mahindra Bank, Tata Consultancy Services and ITC were among the laggards from the pack.

"Investor sentiment remained supported by a favourable election outcome in West Bengal and a better-than-expected Q4 earnings, helping markets look past Middle East-related concerns.

"However, intermittent profit booking persisted amid uncertainty surrounding the US 'Project Freedom' initiative to reopen the Strait of Hormuz," Vinod Nair, Head of Research, Geojit Investments Limited, said.

While the resolution path may take time, optimism around gradual progress continues, he said, adding that crude prices holding below USD 110 are providing near-term comfort.

Broader markets also advanced with the BSE SmallCap Select index jumping 0.79 per cent and MidCap Select index by 0.75 per cent.

Among major sectoral gainers, BSE Realty, Services, Capital Goods, Industrials, Healthcare and Utilities gained more than 1 per cent. BSE IT and PSU Bank were major losers.

A total of 2,607 stocks advanced, while 1,735 declined and 216 remained unchanged on the BSE.

"Markets are expected to sustain their gradual upmove, with near-term direction anchored around three key drivers - softer crude oil prices, strong domestic data (record GST collection & healthy April auto sales growth), and political clarity post state election outcomes.

"A BJP win in three out of five assembly elections is likely to reinforce political stability and provide a sentiment boost, while record GST collection and better-than-expected auto volume growth signals resilient underlying demand," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Brent crude, the global oil benchmark, jumped 1.48 per cent to USD 109.8 per barrel.

In Asian markets, South Korea's benchmark Kospi and Hong Kong's Hang Seng index ended higher. Markets in Japan were closed due to a holiday.

Markets in Europe were trading mostly lower. US markets ended mostly higher on Friday.

"Early trends from key state election results provided a supportive domestic trigger, while easing geopolitical concerns, like signs of progress in US–Iran discussions, helped cool crude oil prices. This, combined with strength in global markets led by a record run in US tech indices, created a favourable risk environment," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Stock-specific momentum added to the upside, with leaders like Maruti Suzuki and Hindustan Unilever driving gains on the back of strong operational updates, he said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,047.86 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, were buyers as they bought stocks worth Rs 3,487.10 crore.

Stock exchanges were closed on Friday for Maharashtra Day.

On Thursday, the Sensex tumbled 582.86 points or 0.75 per cent to settle at 76,913.50. The Nifty dived 180.10 points or 0.74 per cent to end at 23,997.55.