Sensex jumps 709 points, tracking strong global cues

Mumbai (Maharashtra) [India], May 8 : The benchmark indices of the domestic equity markets on Monday recovered the losses made on Friday, tracking strong global cues. The better-than-estimates earnings also helped investors' sentiments.
BSE Sensex went up more than 1 per cent or 709 points to settle at 61,764.25 and NSE Nifty surged 195.40 points to end at 18,264.40.
Some of the gainers on BSE were Marico, Triveni Turbine, India Glycols and Agi Greenpac. Tatva, Bank of India, Gujarat Ambuja and TCNS Clothing were some of the laggards on the exchange on Monday.
The 30-share Sensex was just around 1,800 points away from its all-time peak of 63,583 touched on December 1, 2022. From the Sensex pack, IndusInd Bank, Tata Motors, Bajaj Finance were the top gainers, rising over 4 per cent.
In US markets, Dow Jones went up 546 points; Nasdaq, NYSE and S&P 500 were trading in the positive territory.
In Asian markets, Hong Kong's Hang Seng surged 247.72 points, Japan's Nikkei declined 208 points, China's Shanghai gained 60 points and S and P ASX went up 59 points on Monday.
In European markets, Amsterdam Exchange, CAC, Deutsche Borse and FTSE 100 were trading in the positive territory as Asian markets opened on Monday.
Now, 30-share Sensex was just around 1,800 points away from its all-time peak of 63,583 touched on December 1, 2022.
Friday's trading session, however, closed sharply lower, partly due to profit booking after the recent consistent bull run and a sharp decline in banking stocks over the prevailing strains in the US regional banks.
The collapse of a few regional banks in the US, which started with Silicon Valley Bank, has sent ripples across the global banking industry and posed fears of a contagion effect across economies. Earlier in the week, firm GST collections, weakness in the US dollar, and continued foreign fund inflows supported Indian stocks.
Reserve Bank of India's (RBI) foreign exchange reserves report, wholesale inflation data, industrial production and manufacturing output data of India and the ongoing earning season will continue to remain in focus.
According to experts, global cues, crude oil prices and global macroeconomic data would drive the market in the coming week.
"Nifty prices this week swung between profit and declines, initially soaring to a five-month high but failing to hold onto gains and settling the week almost unchanged at 18069," said Master Capital Services senior vice-president Arvinder Singh Nanda.
The profit-booking in prices had been attributed to mounting concerns in the US banking system along with negative development in HDFC twins.
Prices are now poised to move towards 18000 and then 17950, the vicinity of rising neckline support of the inverse head and shoulder pattern. If prices manage to fall below 17940, the next support will align around 17800. On the higher side, 18270 will act as the nearest resistance which if broken decisively will open room for further upside towards 18450.
"Bank Nifty relatively is looking more fragile compared to Nifty. Prices declined nearly 1.30 per cent to end the week at 42661.20, and now looking to extend their ongoing southward journey for 41800-41500, which had acted as stiff resistance in the previous rally," Nanda further said.