Markets bounce back on Q2 optimism

Mumbai: Equity indices returned to winning ways on Monday after a four-session losing streak as investors piled into energy, finance and IT stocks ahead of the earnings season. Markets shrugged off lacklustre global cues and a depreciating rupee as investors wagered on healthy corporate earnings amid resumption of economic activities, traders said.

The 30-share BSE Sensex climbed 533.74 points or 0.91 per cent to finish at 59,299.32. Similarly, the NSE Nifty surged 159.20 points or 0.91 per cent to 17,691.25. "After a week-long consolidation, the Indian market is back in action despite unfavourable global sentiments. The momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand. The IT sector was under consolidation before the start of quarterly results, which has led to a marginal uptick as major companies are scheduled to announce their results, which can emerge as an opportunity if the results are in line with the robust outlook. RBI Monetary Policy Meeting is another key event that is being keenly watched by the market which is expecting no change instance," said Vinod Nair, head (research) at Geojit Financial Services. S Ranganathan, head (research) at LKP Securities, said: "Indices remained buoyant through the day led by metals and PSU names, with the market breadth exhibiting positive momentum across midcaps and smallcaps.''