Both the Sensex and Nifty jumped on Monday, bucking a softer trend in global markets, as blue-chips advanced on strong factory and stable inflation data, while value-buying after three consecutive weekly declines also helped.

The country's factory output grew more than expected in April, reaching a two-month high, and retail inflation edged up, while wholesale prices fell at an annual rate of 2.36 percent in May, easing concern over an economy facing the worst drought since 2009.

The 30-share BSE index Sensex jumped 161.25 points or 0.61 per cent to 26,586.55 and the 50-share NSE index Nifty gained 31 points or 0.39 per cent to 8,013.90.

Among BSE sectoral indices, auto index was the star-performer and was up 1.12 per cent, followed by healthcare 0.96 per cent, oil & gas 0.87 per cent and TECk 0.54 per cent. On the other hand, consumer durables index was down 0.83 per cent, followed by metal 0.62 per cent, power 0.48 per cent and banking 0.4 per cent.

Top five Sensex gainers were Sun Pharma (+2.95%), Bajaj Auto (+2.13%), M&M (+2.12%), HDFC (+2.07%) and Reliance (+1.33%), while the major losers were Hindalco (-1.97%), VEDL (-1.49%), SBIN (-1.34%), Tata Power (-0.69%) and NTPC (-0.66%).

A report by SMC investments and Advisors said: "Asian stocks nursed losses early today after talks aimed at reaching a deal between Greek ministers and their bailout creditors collapsed over the week-end. US stocks closed lower on Friday, as continued uncertainty over Greece pressured stocks and investors kept an eye on a calmer bond market ahead of next week's Federal Reserve meeting.US producer price index for final demand rose by 0.5 per cent in May following a 0.4 per cent drop in April. Economists had expected prices to increase by 0.4 per cent. The rebound in energy prices led to the bigger than expected increase in producer prices, with energy prices surging up by 5.9 per cent in May after tumbling by 2.9 per cent in April."

Global markets

Failure in the latest talks aimed at averting a Greek default hurt shares in Europe and Asia on Monday, drove investors into the safety of low-risk government bonds and weighed on the euro.

As contagion from the collapse of Sunday’s talks spread across markets, premium investors’ demand to hold Spanish 10-year bonds over German Bunds hit its highest since August.

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