Sensex makes a 700-pt comeback, here's how that happened

NEW DELHI: Strong buying in most sectors, led by pharma, FMCG, bank, financial and IT gave equity barometer Sensex solid impetus to jump nearly 650 points during Monday's session.After two consecutive session of losses, market staged a significant comeback after investors embarked on a fresh spell of buying across sectors, including financials. The NSE Nifty index was ended the session at 10,250.85, up 220.85 points or 2.20 per cent while the BSE Sensex settled 718.09 points or 2.15 per cent higher at 34,067.40.Let's take a look at factors that propelled the market to higher trajectory:Strong buying in heavyweights: Shares of ICICI Bank, Reliance Industries, Larsen & Toubro, State Bank of India, Tata Consultancy Services and Axis Bank witnessed decent traction today. ICICI Bank surged over 10 per cent, contributing most to the rally in Sensex. Shares of the company jumped after the bank beat street estimates in its Setember quarter earnings. The bank posted a 55.84 per cent year-on-year fall in standalone profit at Rs 908.88 crore for the quarter ended September 30. The Analysts in an ET Now poll had estimated the profit figure at Rs 815 crore. Market cheered RBI's OMO plan: RBI's plan of buying 400 billion rupees of government bonds via open-market operations in November, aimed at injecting liquidity into the system, came as a welcome relief for market which has been nervous on liquidity crunch issue after defaults at a major infrastructure financing company. India’s bonds, rupee and stock markets all gained on Monday as they took their lead from the RBI’s announcement that it will buy 400 billion rupees of government bonds via open-market operations in November as it seeks to inject liquidity into the market, Reuters said. Global cues improved: A turnaround in global cues gave hope to investors at home. European shares opened in positive territory on Monday in a tentative rebound from a sell-off, Reuters reported. UK's FTSE 100, Germany's DAX and French CAC 40 climbed up to 1 per cent.Ease in crude oil prices: Oil prices eased today as the rise in US dollar and concerns of slowing demand owing to weak economic growth weighed on. However, the prospects of a tight supply after US sanctions on Iran gets effective still looms, but market is expecting an increased supply from Saudi Arabia as it has promised to keep the oil market adequately supplied. Brent crude oil futures and US West Texas Intermediate (WTI) crude futures were trading in the red. more to come...

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