(RTTNews) - Strong global cues, Prime Minister Manmohan Singh's statement on proposed legislative changes in the insurance and pension sectors, and the appreciating rupee on the back of continued weakness of the dollar against major currencies, lifted the Indian market sharply higher on Monday.
Globally, European and Asian stocks advanced notably after finance ministers of G-20 countries pledged to keep stimulus measures intact for the time being and Friday's weak U.S. jobs data reinforced hopes that interest rates will remain low for some more time.
A report from the Labor Department showed that the U.S unemployment rate surpassed 10 percent last month for the first time since 1983. The Dow futures are currently up by 78 points, pointing towards a positive opening on Wall Street Monday morning.
Back home, banking stocks outperformed the broader market on hopes the government would push for long-stalled reforms in the financial sector. Allahabad Bank and Canara Bank surged up over 7% each, Axis Bank rallied 6.63%, SBI advanced over 5%, ICICI Bank gained 4.72% and HDFC Bank added over 4%.
Metals, realty and oil/gas stocks also showed notable gains, while telecom stocks came under significant selling pressure. Bharti Airtel tumbled nearly 4% amid reports it is not seeking new acquisitions, while Reliance Communication fell over 2%. FMCG player Hindustan Unilever slipped 0.71% on a brokerage downgrade.
The BSE Sensex opened higher at 16,191 and rose steadily throughout the session before closing near the day's high at 16,499, up 340 points or 2.11% and the S&P CNX Nifty rose 102 points or 2.13% to 4,898. Likewise, the BSE mid-cap index moved up 1.97% and the small-cap index by 2.16%. The market breadth on the BSE was extremely positive, with 1996 gainers versus 756 decliners.
Larsen & Toubro advanced 1.51% on wining a contract worth Rs 1635 crore for building a coal-fired plant in Madhya Pradesh. Fedders Lloyd Corporation hit the 5% upper circuit limit on receiving an overseas order. Ahluwalia Contracts (India) added 1.18% on winning various new contracts worth Rs.242 crore.
In the IT sector, Infosys gained 0.73%, TCS edged up 0.35% and Wipro rose 0.63%, underperforming the broader market amid a stronger rupee.
Jubilant Organosys rose over 2% on reports it will exit its non-core businesses by March. Plethico Pharmaceuticals surged up 7.43% after its U.S subsidiary Natrol launched a new product ' Natrol Immune Boost' for the wellness of body's immune system.
