The Indian equity benchmarks snapped their four-day losing streak on Monday powered by gains in index heavyweights Reliance Industries, Infosys, ICICI Bank, Tata Consultancy Services, Bajaj Finance and State Bank of India. The Sensex rose as much as 783 points and Nifty 50 index touched an intraday high of 17,750.90. Hopes of strong September quarter earnings, which will start with IT giant TCS, and continuation of dovish monetary policy from the Reserve Bank of India later in the week lifted investors' sentiment, analysts said.
The Sensex surged 534 points to close at 59,299 and Nifty 50 index advanced 159 points to settle at 17,691.
"If the Nifty is able to sustain the level of 17,550-17,600 it can witness higher levels of 18,000. Technical indicator suggests, a volatile movement in the market in a small range between 17,600-18,000," said Ashis Biswas, head of technical research at CapitalVia Global Research.
Buying was visible across the board as all the 15 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Metal index's 3 per cent gain. Nifty Realty, PSU Bank, Pharma, Media, Bank, Financial Services, IT and Private Bank indexes also rose between 0.9-2.6 per cent.
Mid- and small-cap shares outperformed their larger peers as Nifty Midcap 100 index rose 1.6 per cent and Nifty Smallcap 100 index climbed 1.54 per cent.
Divi's Labs was the top Nifty gainer, the stock rose 7.84 per cent to close at record high of Rs 5,211 after Merck and Company's partner Ridgeback Biotherapeutics said on Friday that its experimental antiviral drug molnupiravir could halve the chances of dying or being hospitalised for those most at risk of contracting severe COVID-19. Divi's Laboratories makes the main ingredient of Merck & Co's drug. Divi's Labs on May 26 informed exchanges that it was authorized manufacturer for Molnupiravir API to Merck's partners in India.
NTPC gained 4 per cent to settle at Rs 145.50 after the company denied report that the company is planning to raise Rs 15,000 crore from IPO of its three subsidiaries.
Hindalco, Bajaj Finserv, Tata Motors, State Bank of India, Bajaj Finance, Tech Mahindra, Tata Consumer Products, SBI Life and Tata Steel were also among the gainers.
On the flipside, Cipla, Grasim Industries, UPL, Indian Oil, Eicher Motors, Bajaj Auto, Britannia Industries, Hindustan Unilever, HDFC Life and Titan were among the losers.
The overall market breadth was positive as 2,331 shares ended higher while 1,016 closed lower on the BSE.