Sensex surges over 200 points; HDFC gains 2%

Markets have started the session on a positive note tracking firm global cues along with strong buying among financials and capital goods shares leading teh gains.

By 9:43, the 30-share Sensex was higher by 223 points at 27,682 and the Nifty gained 63 points at 8,405.

Market participants would keep a close eye on oil prices amid rise in geopolitical tensions in West Asia as Saudi Arabia launched military operations in Yemen.

Rising tensions in the West Asia, liquidity conditions in the market and overall investment trend of foreign funds will largely dictate trend on the bourses in this holiday shortened week, say experts.

KEY LEVELS

Techncial chartists feel that the markets will find resistance at higher levels. On the downside, the Nifty will find support at 8,250 levels.

"In the near term, we expect the previous support level of 8,500 to now act as a strong resistance. In the coming week, we are seeing a trading range of 8,250 to 8,500 for our market, during which, we expect the Nifty to trade with a negative bias. On the downside, the 8,250 mark (Nifty) would now act as a major support for the bulls. A violation of this support may augment strong pessimism in the market. In this scenario, lower levels of 8,100 – 8,050 cannot be ruled out," point out technical analysts at Angel Broking in a report.

ECONOMIC DATA

On the economic front, HSBC India Manufacturing Purchasing Managers' Index (PMI) for March 2015 is due this week. Moreover, the government would unveil eight core infrastructure industries data for February and unveil fiscal deficit data on Tuesday.]

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 320.52 crore on Friday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 674.76 crore on Friday, as per provisional data.

GLOBAL MARKETS

Asian stock markets were subdued on Monday in a week book-ended with Easter holidays across the globe and a US jobs report that could affect the timing of the first hike in interest rates there.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4%, with Australia's main index down 1.4% amid weakness in commodity prices.

Japan's Nikkei dithered on either side of zero though there was some talk of demand for the new month and quarter. Seoul edged 0.2% into the black.

Federal Reserve Chair Janet Yellen on Friday reaffirmed that rates would likely start rising later this year but emphasised the pace of tightening would be gradual and data-dependent.

SECTORS & STOCKS

BSE Capital Goods and FMCG indices have surged over 1% followed by counters like Auto, Banks, Healthcare, IT, Power and Realty, all gaining by almost 1% each.

The top gainers on the Sensex are HDFC, Wipro, ITC, Tata Steel, Sesa Sterlite, Axis Bank, ICICI Bank and L&T.

Housing Development Finance Corporation (HDFC) has launched a school — The HDFC School — in Gurgaon. HDFC has gained over 2%.

Among broader markets, BSE Midcap and Smallcap indices are up 0.9-1.1%. Markets breadth is positive on the BSE with 921 advances and 201 declines.