Mumbai: Stocks staged a strong comeback in early trade with the BSE Sensex gaining over 260 points and the Nifty recapturing the 10,500-level on continued buying by domestic funds ahead of inflation data to be released after market hours today.
Asian markets were also trading in the green after a late-day rally on Wall Street on Friday.
The 30-share Sensex recovered by 260.12 points, or 0.76%, to 34,265.88 in opening trade. The index had lost 407.40 points or 1.18% to settle at one month low of 34,005.76 on Friday.
All the sectoral indices led by metal, realty and infrastructure were trading in the green with gains up to 1.44%.
The broad-based NSE Nifty went up by 81.65 points or 0.78% to 10,536.60.
Major gainers were ONGC, Tata Steel, Sun Pharma, Bharti Airtel, Adani Ports, L&T, HeromotoCorp and Axis Bank.
Larsen and Toubro rose by 1% after it announced a Rs 2,200 crore order win by its wholly-owned arm L&T Hydrocarbon Engineering from Abu Dhabi-based Al Dhafra Petroleum Operations Company Limited.
SBI, however, dropped 2.85% following poor quarterly results. The PSU lender on Friday posted a net loss of Rs 1,886.57 crore after a massive under-reporting of dud assets in the past fiscal and reverses in treasury operations.
Brokers said sustained buying by domestic institutional investors amid a firm trend at other Asian bourses improved the market sentiment.
Domestic institutional investors bought shares worth a net Rs 588.42 crore while foreign portfolio investors sold shares worth a net Rs 1351.70 crore on Friday, provisional data showed.
In the Asian region, Hong Kong’s Hang Seng was up 0.64% and Shanghai Composite Index by 0.39% in early trade. The US Dow Jones Industrial Average ended 1.38% higher on Friday.