Value in beaten down stocks helped Indian markets resume their happy rally

Indian markets resumed their bounce back rally on Monday as investors hunted for value in beaten down stocks near 13-month lows and traders went long on Realty, Power, Metals and banking futures.

The Nifty added 83 points to end the day at 7,872 points. As a result, the Advance-Decline Ratio was 43/7. NTPC, Vedanta, BPCL, Hindalco and Tata Steel were the top gainers on the Index while Cairn, Idea, Bajaj Auto, Maruti and TCS slipped in trade.

Amtek Auto, Infosys and ICICI Bank were the top traded counters on the National Stock Exchange and all three stocks traded in positive territory.

Broader benchmarks put a strong foot forward in trade today. CNX 100, CNX 200 and CNX 500 Indices gained more than 1 percent each. The CNX Mid Cap surged 1.4 percent while the CNX Small cap Index added 1 percent. All sector-specific indices inched higher on the National Stock Exchange: The Bank Nifty jumped 1.8 percent to 16,911 points. CNX Realty surged 2 percent; CNX PSU Bank Index surged 2.5 percent and smart gains were seen on CNX IT, CNX Metals and CNX Pharma indices.

The trend was equally strong on the Bombay Stock Exchange with the Sensex surging 247 points at 25,856 and 28 stocks advancing compared with just two that fell. Axis Bank, Wipro, State Bank of India and GAIL were the top gainers on the index while Bajaj Auto and Maruti lost steam.

ICICI Bank, Axis Bank and Tata Steel were the top traded stocks on the Sensex.

The broader Advance-Decline Ratio was 1,693 stocks gaining compared with 948 that fell on the BSE.

The futures and options space was dominated by the bulls as nearly all sectors posted smart gains in trade today. Amtek Auto topped the gainers list while Page Industries, Mcleod Russel and UPL fell in trade. Just Dial Futures showed the highest rise in volumes today as the company unveiled a new mobile phone based application to drive more traffic to its site.

Venkey's Malwa Cotton, Parrys Sugar and Coromandel International made it to the top volume buzzers list on the NSE.

(Image credits: youtube)