The Sensex closed the day at 27,490, higher by 479 points and the Nifty ended at 8331.95, up 150.45 points.
Stock markets closed nearly 2 per cent higher on Monday, with the Nifty posting its biggest daily gain in more than two months, as investors snapped up beaten down blue-chips after the Lok Sabha approved the 2015/16 Finance Bill on Thursday.
The BSE Sensex gained 1.77 per cent to 27,490.59, marking its biggest single-day gain since March 30, 2015.
The Nifty added 1.84 percent to 8,331.95, its best daily gain since Feb. 27, 2015..
Few factors that kept optimism alive on D-Street.
ECONOMY
The Indian manufacturing economy recorded a growth slowdown during April.
Total new orders increased at a weaker pace and, as a consequence, companies reduced staffing levels and raised output to a lesser degree.
At 51.3 in April, down from 52.1 in March, the headline HSBC India Purchasing Managers’ Index (PMI) – a seasonally adjusted indicator designed to give an accurate overview of operating conditions in the manufacturing economy – pointed to a weaker improvement in operating conditions across the sector.
Nonetheless, the headline index recorded above the crucial 50.0 threshold for the eighteenth successive month.
SECTORS & STOCKS
Shares of Pantaloons Fashion & Retail and Aditya Birla Nuvo gained up to 20 per cent, a day after Aditya Birla Group merged its apparel businesses into a Rs 5,290-crore entity named Aditya Birla Fashion and Retail.
Pantaloons Fashion jumped 19.92 per cent to Rs 136.60 -- its upper circuit limit on the BSE, while Aditya Birla Nuvo surged 12.94 per cent to Rs 1,773.55.
BSE Realty sector was the top sectoral gainer up 2.3% followed by Consumer Durables, Healthcare, Oil and Gas indices among others.
Gains were led by HDFC Group shares with HDFC and HDFC Bank up 1.5-1.9%. Among other banks, ICICI Bank and SBI were up 0.9-1.4% each.
FMCG shares witnessed renewed buying interest at lower levels. ITC and HUL were up 0.7-1.6% each.
IT shares were also trading firm after the recent correction post lower-than-expected first quarter GDP in the US.
Infosys and TCS were up 0.4-1.4% each. Oil explorers such ONGC and Oil and India were up over 3.5% each on talk that eports that the government has decided to scrap the fuel subsidy-sharing mechanism.
Reliance Industries was up 1.4%. Mahindra & Mahindra was up 3.4% after the company reported eported strong growth in tractor exports during April 2015 compared with the same month last year. Tractors exports grew 20% to 1,005 units in April 2015 compared with 836 units in April 2014, the company said in a release.
Pharma shares which had corrected in the previous week also witnessed value buying at lower levels. Sun Pharma, Dr Reddy's Labs and Cipla were up 1-3.4% each.
Among other shares, Adani Ports and Special Economic Zone (SEZ) has rallied 6% to Rs 335 after reporting a strong 49% year on year (yoy) increased in its consolidated operation profit to Rs 1,247 crore in March 2015 quarter.
The company had EBIDTA of Rs 836 crore in corresponding quarter last year.In the broader market, the BSE Mid-cap index was up 0.8% and the Small-cap index was up 1.6%. Market breadth was strong with 1,692 gainers and 570 losers on the BSE. (With inputs from Business Standard)
