Global rebound, banking rally lift Sensex 265 pts

Market found its winning ways today as Sensex rose over 265 points and Nifty reclaimed the key 8,500-level on emergence of rally in bank stocks in anticipation of rise in deposits after withdrawal of high value notes and investors coming to terms with US poll result.
The trading momentum in domestic markets accelerated tracking the overnight recovery in the US market and later on the Asian bourses. Global investors are believed to have consoled themselves by factoring in Donald Trump's pro-business policies, also resonating in domestic market trading momentum.
On domestic bourses, bank stocks rose sharply by up to 12 per cent after the government's move to withdraw 500 and 1,000 rupee notes from circulation as part of black money crack down.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, "The surprising US election outcome has come as a one-time obstacle as the 'BREXIT' referendum... The market moved ahead keeping aside the notional excitement. Some caution can be expected in the near-term. Midcaps and banks can continue to rally since prices are still cheaper and benefit from demonetisation."
Hectic short-covering and value-buying were the order of day, besides the market was well supported by quarterly earnings of key corporates.
Buying was led by metal, banking, telecom, utilities, power and financial sectors, helped by second-line shares of midcap and smallcap companies.

While, IT, auto and consumer durable segments saw a selling pressure.

The 30-share Sensex opened gap-up at 26,605.05 and hovered between 27,743.46 and 27,457.05 before concluding at at 27,517.68, showing a gain of 265.15 points, or 0.97 per cent. The gauge had dropped 338.61 points yesterday.
The Nifty also gained 93.75 points, or 1.11 per cent, to end at 8,525.75, after trading between 8,598.45 and 8,510.70.
Meanwhile, Foreign portfolio investors (FPIs) sold shares worth Rs 2,095 crore yesterday, as per provisional data.
Overseas, Asian markets ended higher to join a global rebound on speculation that Donald Trump will pursue business- friendly policies.

In the US, major stock indices closed mixed yesterday,
with and utilities lagging, as investors geared up for the start of earnings season and digested falling oil prices. The Nasdaq composite hit a new all-time closing high.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 325.10 crore yesterday, as per provisional data released by the stock exchanges.
Domestic institutional investors (DIIs) bought shares worth a net Rs 96.82 crore yesterday, as per provisional data.
The BSE Mid-Cap index provisionally rose 0.8 per cent. The BSE Small-Cap index provisionally advanced 0.7 per cent. Both these indices outperformed the Sensex.

Back home, out of the 30-share Sensex, 22 scrips ended higher.
Major gainers were Adani Ports 3.25 per cent followed by Tata Motors 2.99 per cent, Tata Steel 2.10 per cent, Asian Paints 1.54 per cent, HDFC Bank 1.46 per cent, ITC 1.26 per cent, Reliance 0.93 per cent, ICICI Bank 0.89 per cent, Hero Motoco 0.86 per cent and Sun Pharma 0.85 per cent.
However, Axis Bank fell by 1.17 per cent followed by Dr Reddy 0.58 per cent, HDFC 0.47 per cent and NTPC 0.43 per cent.
Among BSE sectoral indices, industrials rose by 1.56 per cent, followed by metal 1.31 per cent, auto 1.26 per cent, capital goods 1.02 per cent, consumer durables 1.01 per cent, power 0.83 per cent, FMCG 0.78 per cent and oil&gas 0.74 per cent, while realty fell by 0.42 per cent.

The market breadth remained positive as 1,664 shares ended higher, 1,150 closed lower while 128 ruled steady.
The total turnover on BSE amounted to Rs 2,820.43 crore, higher than turnover of Rs 2,768.64 crore registered during the previous trading session.