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Markets opened with a gap-up as investors gave a thumbs up to the Bharatiya Janata Party (BJP)'s good showing in the state elections and the government's ending of formal price control on diesel and raising of natural gas prices.
At 0940 hrs, the Sensex was up 334 points at 26,443 and the Nifty gained 103 points at 7,883.
The broader markets too witnessed a strong up move. The midcap index was at 9,390 and the smalclap index opened at 10,414, with gains of over a percent each.
ONGC, HDFC, HDFC Bank, Tata Motors, ICICI Bank, Axis Bank, L&T, and ITC were among the Sensex gainers in early trades.
Sectors & Stocks
All the sectoral indices started in the green. Oil & Gas, Auto, Bankex, Consumer Durables, Capital Goods, FMCG, Health Care, Metal and Power indices up 1-2.2% were the top sectoral gainers.
However, the IT pocket after a 0.5% start came under selling pressure and turned flat.
Oil & Gas pocket was under spotlight after the government announced diesel price deregulation and the gas price hike from the current $4.2/mBtu to $5.61/mBtu. The movers in this space were ONGC, HPCL, BPCL and IOC which surged 5-6% while Reliance Industries slipped 0.4%.
Financials surged as banking names like ICICI Banks, SBI, HDFC twins, and Axis Bank gained 2-3%.
Tata Motors, Hindalco, L&T, Cipla, Maruti and Sun Pharma up 1.6-3% were the other notable gainers among the Sensex-30.
However, IT majors like Infosys and Wipro were in red with a 0.4% and 0.7% cut. However, TCS edged higher by 0.6% after a 7% rout seen on the previous trading day.
Hero MotoCorp down 1.3% was another weak name in the opening trades.
The market breadth was positive on BSE. 1,317 stocks advanced while 272 stocks declined.
Global Markets
Japanese stocks led a rally in Asia on Monday, after solid U.S. data and earnings calmed tumult in global financial markets and reassured investors worried about the health of the world economy.
The upbeat US data has brought some calm to markets after a week of turbulence as signs of softening global growth roiled investors and sent volatility spiking.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 1.3%, while Japan's Nikkei stock average jumped about 3.4%, on track to post the biggest daily rise in more than a year and retaking some of the 5% it shed in the previous week.
Shares in Shanghai added 0.5%, after sources said on Friday that China's central bank is set to inject about 200 billion yuan($32.66 billion US dollars) worth of three-month loans into five or six medium-sized listed banks to keep liquidity ample and support the slowing Chinese economy.
On Wall Street, all major stock indexes climbed more than 1% on Friday, though the S&P 500 posted its fourth straight weekly decline, its longest streak in more than three years.
