The 30-share Sensex advanced 578.51 points to end at 59,719.74. Its broader peer, Nifty50, ended at 17,816.25, up 194 points.
Sun Pharma was the top gainer from the 30-share pack, rising 4.71 per cent to Rs 915.75.
advanced 3.12 per cent, Dr Reddys Labs increased 2.88 per cent and surged 2.62 per cent. , , and also ended with gains.
Sectorally, the Nifty Pharma index rose 3.08 per cent, while Nifty Consumer Durables surged 2.12 per cent. Nifty Midcap50 and Smallcap50 increased 1.26 per cent and 1.04 per cent, respectively.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said that the relief rally continued for the second straight session, which is indicative that investors are finding local stocks attractive after every short-term correction.
Chouhan further added, even as there are talks of global recession at some point, the Indian economy is holding up really well in times of uncertainty, which is prompting investors to bet on our growth story. However, Nifty, near the 20-day SMA , has formed Hammer candlestick formation which is broadly negative for the market.
“We are of the view that the short term support has shifted to 17,700 from 17,500. If the index slips below 17,700, accelerated selling pressure will drag it down to 17,600-17,500 levels. On the flip side, above 17,700, the index could retest the level of 17,950-17,800,” Chouhan added.
Vinod Nair, Head of Research at Geojit Financial Services, said that the weakness of western markets did not affect the buoyant domestic market. The Indian market is not seemingly apprehensive of Fed policy. Buying on dips is the strategy being reinforced here. Even the lagging IT and Pharma stocks joined the rally, slowly emerging as a value pick for long-term investors.
However, to sustain the trend, the global market needs to stabilise. It makes sense to be stock and sector specific in this unfavourable global economic scenario & highly premium valuation of India compared to the rest of the world, Nair added.
MORE TO COME…