Indian equities rallied for a third consecutive session on Monday,with the benchmark indices touching their highest levels in nearly a month having gained 5.5% over the period.
The 30-share Sensex rallied 181.58 points,or 0.9%,on
Monday,taking its three-day gains to 1025.27 points.
The broader Nifty,meanwhile,rose 56.65 points to 5,898.85,making a three-session run of about 310 points.
The latest market rally is led by stocks from the oil & gas sector with ONGC,Oil India and Reliance Industries clocking in gains of about 6% to 10% since Wednesday. Other bluechip stocks that witnessed a revival in buying interest included DLF,Sesa Goa and Tata Power,which rose more than 10% in last three sessions.
On Monday,the market rally was led by stocks like SBI,GAIL,Sterlite Industries and Maruti Suzuki,each rising more than 3%.
A moderation in the March quarter current account deficit and the government’s decision to double the domestic price of natural gas resulted in a turnaround in investor sentiment in the last three trading session,say experts.
As the mood turned,FIIs seemed to have reversed their selling streak as well. As per the provisional data on the exchanges,FIIs have bought $189 worth of shares on Friday after selling equities amounting to $1.8 billion in the previous 13 consecutive sessions. Meantime,domestic institutional investors sold about $98 million worth of equities on Friday following $1.5 in net purchases in the previous 13 sessions.
Traders said that poor rollovers of long positions in the June series also added fuel to the market surge since most the traders held a bearish view on the market. On Thursday,about 47% of the Nifty June positions were carried forward into the July series,the lowest rollover since at least January 2011.
While the market is likely to continue its upward bias,the Nifty may witness strong resistance at the 5,950-6,000 levels, added a trader.