Snapping six consecutive sessions of losing run the Indian stock markets' key indices, Sensex and Nifty, closed in the positive on Monday helped by good buying support in banking and IT stocks.
The 30 stock S&P BSE Sensex rose 237.42 points or 0.46 per cent to close at 51,597.84 points against its previous session's close at 51,360.42 points.
The Indian equities markets witnessed volatile trading. The Sensex started the day in the positive at 51,470.03 points but slipped into the red soon after the opening of the trade hitting a low of 51,062.93 points in the early morning trade.
The Sensex recovered from the losses later in the day. It surged to a high of 51,714.61 points in the intra-day.
The Sensex has closed in the positive terrain for the first time in the past seven trading sessions.
There was heavy selling pressure in the market last week. The Sensex had lost 2,943.02 points or 5.41 per cent last week. The index had closed 135.37 points or 0.26 per cent down on Friday.
The broader Nifty 50 of the National Stock Exchange closed 56.65 points or 0.37 per cent down at 15,350.15 points against its previous session's close at 15,293.50 points.
Earlier, the Nifty started the day in the positive at 15,334.50 points but it slipped into negative in the morning trade hitting a low of 15,191.10 points. The Nifty touched a high of 15,382.50 points in the intra-day.
There was good buying support banking, financial and IT stocks.
HDFC surged 3.97 per cent to Rs 2134.25. Hindustan Unilever soared 3.95 per cent to Rs 2195.95. UltraTech Cement surged 2.96 per cent to Rs 5330.90. Asian Paints climbed 2.96 per cent to Rs 2659.55. HDFC Bank soared 2.47 per cent to Rs 1322.
IT stocks rallied. Wipro climbed 2.30 per cent to Rs 414.50. Infosys rose 1.95 per cent to Rs 1414.75. Tech Mahindra rose 1.47 per cent to Rs 979.20. Tata Consultancy Services closed 0.78 per cent higher at Rs 3113.20.
Energy and infra stocks slumped. Tata Steel tumbled 5.03 per cent to Rs 861.20. IndusInd Bank dipped 2.92 per cent to Rs 783.35.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, ""The Nifty index witnessed consolidation with the heavyweights supporting the index while the broader market continued to witness deep pain. The index lower end support stands at 15200 and immediate resistance is placed at 15450 a break on either side will lead to trending moves. The resistance if taken out can witness a rally towards 15800 levels.
The Bank nifty index witnessed sideways consolidation where the fight between the bulls and the bears continued. The index is still trading in a downtrend with lower high and lower low formations intact. On the daily chart. The immediate resistance on the upside is placed at 33,100 level and a break above this can witness some short covering. The downside support stands at 32,400 and a breach below this will lead to fresh round of selling pressure"
The index heavyweight Reliance Industries Limited slumped 1.80 per cent to Rs 2542.80. NTPC fell 1.57 per cent to Rs 138.25. Mahindra & Mahindra slumped 1.54 per cent to Rs 982.50. Thirteen of the 30 scrips that are part of the Sensex closed in the red.
Vinod Nair, Head of Research at Geojit Financial Services said,""Positive trends in the global markets inspired domestic market to trade positively with large caps gaining the most while mid & small caps continued to trade with cuts. Prevailing inflationary pressure and concerns over policy tightening limited the upside. Among the sectors, metals were the top laggard due to a sharp fall in commodity prices along with a fall in global & domestic demand"