The Sensex surged 665.44 points or 1.87 per cent to settle at 36,256.69, while the Nifty 50 advanced 179.15 points or 1.68 per cent to settle at 10,830 on the day of F&O settlement for the January series.
However, the broader market underperformed with the BSE Mid-Cap and BSE Small-Cap indices rising 0.42 per cent and 0.80 per cent, respectively.
Among the sectoral indices on the BSE, IT (up 2.13 per cent) and Energy (up 2.1 per cent) outperformed the Sensex.
Infosys (up 3.41 per cent), Reliance Industries (2.70 per cent), HDFC (2.03 per cent) and HDFC Bank (2.39 per cent), Axis Bank (4.64 per cent), Tata Motors (3.99 per cent), Kotak Mahindra Bank (2.60 per cent), Bajaj Auto (2.18 per cent) and SBI (2.03 per cent), were the major Sensex gainers. Yes Bank (-2.56 per cent), HCL Technologies (-1.17 per cent) and Bajaj Finance (-1 per cent) were the major Sensex losers.
Technical view
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “It was certainly an astounding day of trade. Who would have thought at the opening that session is going to come with loads of surprises?
“With the Union budget slated for Friday, with the kind of close we had, things start looking quite encouraging. For the coming session, we would advise staying light as we may see higher volatility on account of the Union budget. This hope rally must have come out of some positive expectation. If any announcement comes in line with expectations, we may see this rally getting extended towards 10,900–10,940 or beyond also. On the flipside, 10,740 followed by 10700 are likely to be seen as immediate supports.
Market view
Jayant Manglik, president, Religare Broking, said: “Markets showed tremendous resilience on F&O expiry day and rebounded sharply to gain over one-and-a-half per cent. It opened gap-up and gradually inched higher the session progressed. The statement by the US Fed that it would be easy on further tightening boosted the sentiment. Besides, upbeat earning announcements by the banking majors like Axis and ICICI Bank further fuelled the rally.
—Ashwin Punnen