Value buying along with positive global cues pushed India’s key equity indices — S&P BSE Sensex and NSE Nifty50 — higher on Monday.
However, both the indices had a gap down opening from their respective previous closes.
Globally, shares changed little as tentative gains in Europe were offset by the earlier weakness across the Asian markets.
Flight cancellations over Christmas revived concerns that the Omicron variant could slow down the economy heading into the New Year.
On the domestic front, volumes on both indices were the lowest since April 3 due to holiday thinned trade.
Among sectoral indices, healthcare, banks and consumer durables gained the most, whereas metals led the losers.
Consequently, the S&P BSE Sensex closed at 57,420.24 points, up 295.93 points or 0.52 per cent from its previous close.
Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) rose to 17,086.25 points, up 82.50 points or 0.49 per cent from its previous close.
“Nifty rose after a down day in the previous session. The advance decline ratio is positive. Volumes in the markets remain very low,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“17,156-17,004 remains the band for the near term for the Nifty and a breach on either side could see momentum accelerating on that side. However, in low volumes sharp moves on either side seem unlikely,” he added.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services: “The domestic market opened on a negative note. However, it reversed mid-afternoon after the British consultancy CEBR report said the world’s economic output will exceed $100 trillion for the first time next year and India looks set to overtake France in 2022 and Britain in 2023 to regain its place as the world’s sixth biggest economy.
“FII selling has reduced sharply over the last few days due to the festive holidays. Markets are expected to remain sideways until the end of the year due to lack of triggers. Q3 results season and build up to the upcoming budget session would be key events that the market would be looking for in January 2022.”
Vinod Nair, Head of Research at Geojit Financial Services, said: “Despite spiking Covid cases globally, the domestic market took a rebound post its weak opening factoring in the low mortality rate of the new variant. Gains in pharma, IT and finance were the major sectoral contributors to the market recovery.”