NEW DELHI: Stocks wriggled out of a tough situation on Monday and ended positive for the sixth straight session, saved just in time by a rally in banking shares.Market participants factored in an accommodative stance by the US Fed at its next policy meet, which added to the appeal of equities.A narrowing trade deficit and FII buying offered more tailwinds.
Rupee's superb show against the dollar, up by as much as 50 paise, prompted more buying.
Benchmark indices saw a gap-up start, but traders locked in gains soon after.
Heavyweight RIL and select private stocks contributed most to Sensex's rally.
The BSE benchmark settled up 71 points, or 0.19 per cent, at 38,095.
NSE Nifty closed at 11,462, up 35 points, or 0.31 per cent.Market at a glanceIn the 30-share index, 18 stocks advanced while 12 declined.
Bajaj Finance was the top index gainer, ending 2.84 per cent higher.
Power Grid, Axis Bank, RIL and Tata Steel were among other top performers.
Meanwhile, shares of Maruti Suzuki slipped the most amid reports that the company has cut production by 26.8 per cent to close to 1,26,000 units.
The scrip closed at 2.56 per cent lower.Midcaps and smallcaps, however, lost ground, ending 0.20 per cent and 0.13 per cent down, respectively.In the sectoral space, auto stocks bled the most (down 1.36 per cent), followed by telecom, IT and teck.
Realty, on the other hand, was the show stealer, rising 2.46 per cent.
Energy and oil and gas too recorded firm gains, rising over 1.50 per cent each.Factors at workRupee rallyThe rupee continued its climb against the dollar amid firm foreign inflows in Indian equities and weakness in the greenback.
The local currency rose as much as 50 paise to 68.59.
According to a Reuters poll, analysts are bullish on the rupee for the first time in nearly a year.Global markets stay upbeatGlobal stocks rose to their highest in five months and the dollar dipped on Monday as traders began to price in an accommodative stance from the US Federal Reserve at its policy meeting this week.
The pan-European STOXX 600 index rose 0.3 per cent, hitting a five-month high.
MSCI's All-Country World index, which tracks shares in 47 countries, was up 0.3 per cent on the day.Expert-takeMarket failed to hold the opening momentum as profit booking emerged after the recent sharp rally.
Liquidity situation in the market is improving and Indian rupee continued to gain strength over the dollar while domestic 10-year yield slid.
Auto index dragged the most due to mixed demand and higher inventory levels.
On the other hand, investors are awaiting Fed policy later in the week to get more cues about global market movement- Vinod Nair, Head of Research, Geojit Financial Services