The Sensex and the Nifty jumped nearly 0.8 per cent at the closing session on Monday on heavy buying by funds and retail investors owing to positive global cues.
The 30-share BSE index Sensex surged 190.10 points to end at 25,519.24 and the 50-share NSE index Nifty jumped 57.4 points to end at 7,625.95.
A report by Equentis Capital said: “The final batch of corporate results could lead to stock-specific action and key macroeconomic data will be closely watched during the truncated trading week. Stock specific action may be there during the results season. The government will unveil industrial production (IIP) data for June 2014 and inflation based on the combined consumer price index (CPI) for rural and urban India for July 2014 on August 12, 2014. On the global front, geopolitical tensions and extended sanctions on Russia are likely to pressure on global economy. The market may remain volatile as FIIs are now becoming net sellers in emerging markets.”
Barring power, FMCG and oil & gas, all other BSE sectoral indices ended in the green. Among them, auto index gained the most by 2.65 per cent, followed by realty 0.96 per cent, capital goods 0.88 per cent and IT 0.67 per cent.
M&M, Tata Motors, HDFC, SSLT and Infosys were the top five Sensex gainers, while the top five losers were GAIL, Dr Reddy's, NTPC, HUL and Tata Power.
European and emerging market stocks advanced as tensions eased in Ukraine and the US showed signs of pushing back militants in Iraq.
The Stoxx Europe 600 Index advanced 1.1 per cent at 11:22 a.m. in London as Standard & Poor’s 500 Index futures added 0.4 per cent. The MSCI Emerging Markets Index rose 1.1 per cent.
Japan’s Nikkei 225 Stock Average rose 2.4 per cent after falling 3 per cent on August 8 after US President Barack Obama’s announcement of air strikes against militants in northern Iraq.
Hong Kong’s Hang Seng Index added 1 per cent and a gauge of Chinese shares in the city rose 1.6 per cent. The Shanghai Composite Index jumped 1.4 per cent.