The Nifty had been trading firm at 4, 857, up 109 points and the Sensex had been at 16, 221, up 380 points.
Over the weekend, the political gridlock found an end when the government gave into Anna Hazare’s demand on the actual anti-corruption bill. On Friday, the United States Federal Reserve refrained from presenting new measures to bolster the economy, but said that they would consider actions to stimulate employment which also improved investor sentiment.
Japan’s Nikkei Share Average was up 1. 3%, Hong Kong's Hang Seng added 1. 5% as well as South Korea’s Kospi Composite jumped 2. 8% following firm closing on Walls Street on Friday. However, China's Shanghai Composite bucked the trend and had been down 1. 3% on reports that People’s Bank of China has increased the total amount that banks must set aside as reserves.
Going forward, analysts said markets will require cues from the first quarter GDP data expected on Tuesday as it'll closely determine the likely action that the Reserve Bank of India will require to fight Inflation. Inflation has remained stubbornly high around 9. 8% for that week ending August 18. Economists fear that growth in the first one fourth could slip below 8%.
All the sectoral indices were trading firm. BSE IT index was the very best gainer up 3. 1%, followed by bankex and metal indices, up more than 2% each.
Top gainers from the IT pack were TCS, Infosys, as well as Wipro, up almost 3% each. From the metal pack Jindal Steel zoomed 7%, JSW Metal and NMDC added 3% and 4% each.
ICICI Bank was up 3%, Axis Financial institution and HDFC Bank advanced 2. 4% each.
All the components on the Sensex were trading within the green. Reliance Industries (up 3. 2%), Infosys (up 3. 2%) and ICICI Bank (up 3%) contributed 120 points about the Sensex in morning trades.
From the broader markets, the midcap and the actual smallcap indices were up over 1% each.
Market breadth was positive; 1362 shares advanced for 335 declining stocks.