It was a splendid ride up north for Indian stocks on Monday, with investors indulging in some hectic buying almost across the board, encouraged by some upbeat results and economic data.
A firm trend in Asian and European markets and hopes that the government will speed up reforms aided the surge as well.
The BSE benchmark Sensex ended the session with a gain of 467.51 points or 1.93% at 24,684.85, near the day's high of 24,709.09. The Nifty, which rose to 7368.60, settled at 7362.50, gaining 132.55 points or 1.83%.
On the economic front, activity in the manufacturing sector inched up in May, expanding for the seventh successive month, with the widely-tracked HSBC Purchasing Managers' Index rising to 51.4 points from 51.3 points in April.
According to the data released by the government after trading hours last Friday, India's gross domestic product grew by 4.7% in 2013-14, holding below 5% for a second year running. GDP growth for the three months ended march came in at 4.6% from a year earlier, compared with 4.7% estimated by analysts.
In the currency market, the rupee opened at 59.27 against the U.S. dollar, down 18 paise from last week's close. It was seen hovering around 59.15 towards the end of the session.
Capital goods stocks sparkled, with strong results from Larsen & Toubro lifting sentiment. Metal stocks were up following an encouraging reading on Chinese manufacturing activity in May. Bank stocks rallied ahead of the Reserve Bank of India's monetary policy review, due on Tuesday. It is widely expected that the central bank will leave rates unchanged for now.
Oil, power, realty, automobile and consumer durables stocks had a good outing as well. Information technology stocks turned in a mixed performance, while healthcare and FMCG stocks traded weak.
Larsen & Toubro ended stronger by nearly 6.5% following a 69% jump in net profit for the quarter ended March 2014. BHEL gained 2.5%.
Sadbhav Engineering, Punj Lloyd, Siemens and AIA Engineering gained 5.5% - 9%. Bharat Electronics, IL&FS Transportation Networks, Crompton Greaves, ABB, AIL, VA Tech Wabag, Thermax and SKF India posted impressive gains.
Among the stocks in the Oil & Gas index, ONGC moved up 5.2% and Reliance Industries gained 1.9%. GAIL India moved up 2.9%. BPCL (6.5%), Hindustan Petroleum Corporation (5.4%), Indraprastha Gas (3.9%) and Cairn India (2%) also rose sharply. Oil India, Petronet LNG and Indian Oil Corporation also closed on a firm note.
In the banking space, State Bank of India (4.3%), Axis Bank (3.6%), HDFC Bank (3.3%) and ICICI Bank (2.8%) rallied sharply. Canara Bank, Bank of India, Punjab National Bank, Bank of Baroda and IndusInd Bank gained 3% - 6.5%. Kotak Bank, Federal Bank and Yes Bank also posted strong gains.
Among automobile stocks, Maruti Suzuki gained a little over 3%. The carmaker has announced that its total sales rose 19.2% to 1 lakh units in May 2014 over May 2013. Domestic sales rose 16.4% to 90,560 units in May 2014 from the same month last year, while exports were up 51.2% at 10,365 units.
Hero Motocorp ended 1.7% up after the company reported an 8% rise in vehciles sales in May. Tata Motors gained 1.6%. Bajaj Auto moved up 1.2% on reporting a 4% rise in vehicles sales in May.
Mahindra & Mahindra ended nearly 1% up. Mahindra & Mahindra announced that its totral tractor sales rose 1% to 23,940 units in May 2014 over May 2013. Total tractor sales in the domestic market rose 3% to 23,132 units in May 2014 over May 2013, while tractor exports declined 30% to 808 units in May 2014 over May 2013. Mahindra & Mahindra said its auto sales numbers stood at 37,869 units in May 2014. Domestic sales decined 15.68% to 35,499 units in May 2014, compared to May 2013. Exports were up 75% to 2,370 units in May 2014 over May 2013.
HDFC ended 2.4% up. Infosys rose nearly 2%. Tata Power moved up following an announcement from the company that it has commissioned its second 25 mw solar farm in Palaswadi, Maharashtra. Hindalco and Coal India also closed on a firm note.
REI Agro,Jyoti Structures, Easun Reyrolle and Ruchi Soya saw some heavy selling due to weak results.
The market breadth was strong. Out of 3087 stocks traded on BSE, 2001 stocks moved up. 977 stocks declined and 109 stocks ended flat.