Markets surge on Iran deal, Nifty regains 6,100

Markets surged on Monday snapping a three-day losing streak on hopes that Iran deal would help India lower its CAD and contain inflation

Markets surged on Monday snapping a three-day losing streak, amid short covering at lower levels, as easing of global crude oil prices following a landmark deal between Iran and world powers would help India reduce its current account deficit and contain inflationary pressures.

On Sunday, US along with five other global powers, reached a landmark agreement with Iran on curbing some of its nuclear programmes in exchange for a limited relief on sanctions.

The 30-share Sensex ended up 388 points at 20,605 and the 50-share Nifty ended up 120 points at 6,115.

Asian markets came off their day's highs and ended mixed on Monday. Japan's benchmark NIkkei ended up 1.5% amid a weaker yen. The Shanghai Composite ended down 0.5% while Hang Seng ended flat with negative bias. The Straits Times ended up 0.2%.

European markets were trading higher after an agreement with Iran and six world powers but energy stocks declined after global crude oil prices eased. The CAC-40, DAX and FTSE-100 were up 0.4-0.9% each.

The Indian rupee continued to remain firm against the US dollar at Rs 62.49 compared with its Friday's close of Rs 62.83 on dollar sale by exporters and banks. Further, hopes of lower dollar demand from oil marketing companies as global crude oil prices eased also boosted sentiment.

The BSE Capital Goods index was the top gainer among the sectoral indices on the BSE up 3.8% followed by Bankex, Realty, FMCG, Auto, POwer, Oil and Gas and Metal  up 1-3.6% each.

In the financial pack, ICICI Bank ended up 5.1%, HDFC gained 2.6%, HDFC Bank rose 2.7% and SBI ended up 3.7%.

Index heavyweight ITC witnessed short covering at lower levels after the stock had corrected in the previous few sessions. The stock ended up 2.6%.

Other Sensex gainers include, L&T, Tata Motors, ONGC and Reliance Industries.

Infosys, NTPC and Dr Reddy's Labs ended trading marginally lower.

Among other shares, Wyeth rallied 15% to end Rs 935 after the board of directors of the pharmaceutical company approved the merger of the company with Pfizer in the ratio of 7:10.
The board also approved the payment of interim dividend of Rs 145 per equity share of Rs 10 each (1450%) to the shareholders of the company.

Pfizer surged 13% to end at Rs 1,612 after announcing a special interim dividend of 36000% or Rs 360 per share. Meanwhile, the board also approved the scheme of amalgamation of the Wyeth with Pfizer.

DIC India ended locked in upper circuit of 20% at Rs 283 on NSE after the company informed exchanges that its promoter DIC Asia Pacific Pte Ltd has indicated a price of Rs 260 for the proposed delisting.

Axis Bank ended 3% up at Rs 1,118 after the Bombay Stock Exchange said it will include the private lender in its 30-share benchmark index S&P BSE Sensex with effect from December 23.

PSU oil marketing companies gained after global crude oil prices eased after Iran and the world powers signed a landmark deal over the weekend. BPCL, HPCL and Indian Oil ended up 3-6% each.

In the broader market, the BSE Mid-cap index ended up 1.1% and the Small-cap index ended up 1%.

Market breadth also ended positive with 1,439 gainers and 1,012 losers on the BSE.