Stock Market Update: Nifty reclaims 16,700, Sensex adds more than 500 points; banking stocks shine, realty top laggard

The domestic equity market surged more than 1% in the afternoon trade anticipating breakthrough in Russia-Ukraine talks and declining oil price on Monday. Benchmarks surged as the Sensex added more than 500 points or over 1% to trade above 56,100. The broader Nifty50 too reclaimed 16,700 as the index went on to create the day's high of 16,782.30, over 1% gain on its previous closing.  

The 12-share Bank Nifty accumulated more than 600 points to trade above 35,100 as banking stocks outperformed with the index gaining more than 1.7%.  

Nifty midcap slipped in the red, while small cap index was trading in the green with positive bias.  

Sectorally, banking, financial services, media and IT stocks saw buying interest, while Realty, metal declined the most in an otherwise positive market.  

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State Bank of India, Infosys, HDFC Bank, ICICI Bank, Axis Bank, Wipro, Maruti, HCL Tech, HDFC Ltd, Bharti Airtel, Tech Mahindra and Asian Paints were among top gainers.  

ONGC, IOC, Tata Motors, Coal India, Shree Cement, Tata Steel, Bajaj Finance, Hindustan Unilever, NTPC and Sun Pharma were top laggards.  

Earlier, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the decline in crude from the recent high of $140 to below $110 and declining trends in most metal prices indicate that the feared high inflation may not materialize. There are two significant trends in the market now: One, FPI selling has come down significantly; two there is value buying in the mid-and small-cap segment."   

He said most important event this week from the market perspective would be the outcome of the Fed meet expected on Wednesday.  

Speaking of Nifty outlook, Anand James - Chief Market Strategist at Geojit Financial Services, said standing in the way of a 17000-17500 run is the 16720-850 congestion region, which is likely to turn upswings lower early this week. "The catchment area for such a dip is likely to be 16330-190, but the 16500 vicinity may prove to be a sticky region initially delaying onset of a directional move," he had said.