Although the rally was on the back of heavy short-covering in largecaps, still the market will take it with both hands, said Jagannadham Thunuguntla, Senior Vice-President and Head of Research (Wealth), Centrum Broking.
Posting its biggest single-day gain since March 2016, the battered BSE Sensex on Monday soared by 611 points following a relief rally in global markets on growing prospects for the USA economy.
The government will announce inflation data based on consumer price index (CPI) and industrial production data after market hours today. On Monday, the broader Nifty of the NSE settled at 10,421.40, rising 194.55 points or 1.9%. The BSE mid-cap index ended higher by 0.76 per cent and small-cap index 0.56 per cent.
Asian shares started the week on a strong note following a U.S.jobs report Friday that showed strength in the American economy while easing fears of inflation and faster rate hikes.
All the sectoral indices, led by IT, Teck, oil & gas, FMCG and realty sectors, were trading in the green with gains up to 1.24 percent.
Major gainers in the 30-share index were I T C (2.81%), Infosys (1.92%), Wipro (1.79%), Bharti Airtel (1.68%), Tata Steel (1.63%), and Tata Consultancy Services (1.36%).
The US data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6% after a spike in January.
Asian stocks from Tokyo to Sydney gained as trade war concerns took a backseat to economic optimism following a United States jobs report on Friday that showed that the American economy continued to strengthen without the prior month's rapid wage gains that stoked inflation fears.