Key reasons why Sensex bounced back on Monday to rally 1,000 pts intra-day

Equity markets staged a strong turnaround on Monday after last week’s underperformance aided by stable sentiment across global equities.

The BSE Sensex surged 989 points in intra-day to hit a high of 60,834, before closing with a 721 points gain at 60,566 level. The Nifty touched a day’s high of 18,084 points as it reclaimed the 18,000 mark after Friday’s slump. The index ended 208 points higher at 18,015. 

Friday’s correction saw a sharp short-covering on Monday as market put aside fears around the Covid-19 situation in China.  

"A realisation has probably sunk into markets that the Covid-19 situation in