Sensex jumps over 100 points, Nifty above 10,800 level
Mumbai: Stocks staged a strong comeback in early trade on Monday, with the BSE Sensex reclaiming the 36,000-mark by surging over 100 points on heavy foreign fund inflows and increased buying by domestic institutional investors.
Asian markets were also trading in the green after US President Donald Trump announced extension of the March 1 deadline for increasing tariff on import of Chinese products, as talks between the two sides were making "substantial progress".
The 30-share Sensex rose 140.29 points, or 0.38 per cent, to 36,011.77 in early trade. The gauge had lost 26.87 points on Friday.
The broad-based NSE Nifty also rose 32.50 points, or 0.30 per cent, to 10,824.15.
Major gainers that supported the recovery on both bourses were Tata Steel, Tata Motors, Vedanta, RIL, HDFC Bank, Infosys, TCS, M&M, Hero MotoCorp IndusInd Bank, Maruti Suzuki, HCL Tech, Bajaj Auto, HDFC, HUL and Sun Pharma, rising up to 1.13 per cent.
Sentiments also got a boost after the GST Council Sunday slashed tax rates on under-construction housing properties to 5 per cent without input tax credit, from the existing 12 per cent, brokers said.
Stocks of realty and housing finance companies were back in better form and scored handsome gains.
Sectoral indices, led by realty, IT, auto, bankex and consumer durables, were trading in the green with gains of up to 2.16 per cent.
While oil and gas, PSU, capital goods and power sector indices were trading lower.
Brokers said heavy foreign fund inflows and buying by domestic institutional investors (DIIs) amid a firm trend at other Asian bourses led the markets higher.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 6,311.01 crore, while DIIs made purchases of Rs 838.88 crore on Friday, provisional data showed.
Elsewhere in Asia, Shanghai Composite Index climbed 3.32 per cent, Japan's Nikkei was up 0.68 per cent, Hong Kong's Hang Seng rose 0.32 per cent in their early deals. Taiwan index too gained 0.39 per cent.
Meanwhile, the US Dow Jones Industrial Average ended 0.70 per cent higher in Friday's trade.