Domestic equities managed their second gain in last ten sessions and recovered from two back-to-back weekly declines on Monday, with Sensex surging nearly 295 points and Nifty 85 points as investors turned towards recent battered stocks for value-buying amid positive global cues.
Besides, strong corporate earnings and expectations of some moderation in retail inflation numbers also added to sentiment revival. Investors heavily bought into recently battered power, realty, capital goods and banking stocks amid continued buying by domestic funds and retail investors.
In the Sensex pack, shares of Tata Steel emerged best performer by climbing 4.22 per cent after the company reported 5-fold jump in third quarter net profit. Recently over-sold healthcare counters rebounded, even as public sector State Bank of India tumbled after registering a surprise quarterly loss.
“Market reversed from previous day's losses owing to positive global cues and expectation of marginal decline in January CPI inflation today. Mid and small cap outperformed the benchmark indices as investors start accumulating the over sold stocks. The economy is forecasted to improve in the long-term with strong earnings growth,” Vinod Nair, Head of Research, Geojit Financial Services ltd, said.