Bulls came back in power on Monday as equity benchmarks rallied sharply after losing 2 percent last week. Late buying in technology, auto, FMCG and banks lifted the Sensex above 25000-mark and Nifty above 7650 level ahead of Q4 and FY16 earnings that will start on April 15 with Infosys results.
The 30-share BSE Sensex rose 348.32 points or 1.41 percent to 25022.16 and the 50-share NSE Nifty climbed 116.20 points or 1.54 percent to 7671.40. The BSE Midcap and Smallcap indices underperformed benchmarks, rising 1 percent and 0.6 percent, respectively. Experts expect this rally to continue for some more time, which may help Nifty cross 7800 during earnings season.
Q4 of fiscal year 2016 would do well for earnings of export-oriented sectors like IT, pharma and autos," Nischal Maheshwari of Edelweiss Securities said, adding private sector banks and urban consumption themes are likely to do well in the fourth quarter.
Meanwhile, for the cement companies, the fourth quarter historically is a good quarter and so they may post good numbers but there is no fundamental change in structural demand as such, he feels.
TCS and Infosys, which normally begin quarterly earnings season, were top contributors to Sensex' gains, rising 3.2 percent and 1.5 percent, respectively. TCS will announce its Q4 earnings on April 18.
Bharti Airtel surged more than 4 percent on acquisition of 4G spectrum from Aircel in 8 circles that helped company become Pan-India 4G operator.
The market breadth was positive as about 1489 shares advanced against 1093 declining shares on Bombay Stock Exchange.
Globally, European markets rebounded after weak opening, reacting to oil rally. Germany's DAX was up 1.2 percent and France's CAC gained 0.7 percent (at 16 hours IST).
Asian markets ended mixed with Nikkei losing 0.4 percent on yen strength but Shanghai rallied 1.7 percent.