Global rebound, banks lift Sensex 265 points

Market found its winning ways on Thursday as Sensex rose over 265 points and Nifty reclaimed the key 8,500 level on rally in bank stocks in anticipation of rise in deposits after withdrawal of high-value notes and investors coming to terms with US poll result.
 
The trading momentum in domestic markets accelerated, tracking the overnight recovery in the US market and later on in the Asian bourses. Global investors seem to have factored in US president-elect Donald Trump's pro-business policies.
 

On domestic bourses, bank stocks rose sharply by up to 12 per cent after the government's move to withdraw Rs 500 and Rs 1,000 banknotes from circulation as part of black (unaccounted) money crackdown.
 
Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said, "The surprising US election outcome has come as a one-time obstacle like Brexit. The market moved ahead, keeping aside notional excitement. Some caution can be expected in the near term. Midcaps and banks can continue to rally, since prices are still cheaper."
 
Hectic short-covering and value-buying were the order of day, besides the market was well supported by quarterly results of key companies.
 
Buying was led by metal, banking, telecom, utilities, power, and financial sectors, helped by shares of midcap and smallcap companies.
 
Information technology, automobile, and consumer durable segments saw selling pressure.
 
The 30-share Sensex opened gap-up at 26,605 and hovered between 27,743.5 and 27,457 before ending at 27,517.7, showing a gain of 265 points, or one per cent. The index had dropped 338.6 points on Wednesday.
 
The Nifty also gained 93.7 points, or 1.11 per cent, to end at 8,525.7, after trading between 8,598 and 8,510.7.
 
Meanwhile, foreign portfolio investors sold shares worth Rs 2,095 crore on Wednesday, going by provisional data.
 
Abroad, Asian markets ended higher to join a global rebound on speculation that Donald Trump will pursue business-friendly policies.
 
European shares also advanced, led by miners and banks amid encouraging results from companies such as Vivendi.