Closing bell: Sensex climbs 37,000 levels, Nifty rises 132 points; Bharti Airtel, Vodafone Idea, Reliance Industries, IOCL stocks gain
A sustainable move above the 11,250 levels might pull the index towards the higher levels of 11,250 to 11,400 levels, says equity market experts.
On account of bank merger news Deutsche and Commerzbank, the Indian indices extended its early morning gains. The BSE Sensex gained 382 points and closed to 37,054, above the psychological 37,000 levels. The 50-stock Nifty rose 132 pointst o 11,168 levels. All indices except IT ended on bear side. The BSE telecom, energy, oil and gas led the Dalal Street rally by adding more than 2 per cent from the Friday close. In fact, the BSE telecom index skyrocketed above 5.5 per cent.
Elaborating upon the market outlook Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business online, "The Indian markets have shown an upside potential and I would maintain my earlier stand that investors should adopt buy on dips strategy till the Nifty trades in the range of 11,000 to 11,250." Earlier in the morning IndiaNivesh equity research had reported that a sustainable move above the 11,250 levels might pull the index towards the higher levels of 11,250 to 11,400 levels.
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Telecom stocks led the rally
The BSE telecom index addded maximum by gaining around 6 per cent from Friday close. The index major Bharti Airtel Ltd counter gained maximum by rising over 8 per cent, shares of Vodafone Idea rose around 5.85 per cent, GTL Infrastructure stocks gained near 4.26 per cent, Bharti Infratel rose around 4.1 per cent, Aksh Optifibre scrip went up by around 3.5 per cent, Himachal Futuristic Communications stocks rose around 3.25 per cent while MTNL and ITI counters went up by more than 1.5 per cent.
Energy major Reliance Industries gained 2.72 per cent, Oil India added 2.36 per cent, IOCL stock rose over 3.5 per cent, HPCL counter scaled over 5.5 per cent while Coal India shares rose by 3.8 per cent.
After trading tepid in early morning session, bank merger news boosted the ASian bourses too. The Japanese Nikkei went up by near 0.47 per cent, Heng Sang added around 0.97 per cent, Shanghai index went northward by around 1.9 per cent while the South Korea's Kospi nudged 0.03 per cent higher.