Sensex Surges 568 Points On Global Cues; Nifty Ends At 7,162

(RTTNews) - Indian shares rallied on Monday, buoyed by firm cues from Asia and Europe as weak trade data out of China and Japan boosted hopes for extra stimulus and the yuan's ascent on comments by China's central bank Governor Zhou Xiaochuan eased concerns over risks of devaluation.

Also, media reports suggested that the European Central Bank is mulling buying re-bundled non-performing loans of Italian banks as part of its asset-purchase program.

Stocks opened gap-up following sharp gains in the U.S. and European markets on Friday. With the rupee edging higher and oil prices remaining stable after Friday's near 12 percent jump, the initial rally picked up further steam as the session progressed.

Domestic economic reports painted a mixed picture, with industrial output contracting for the second consecutive month and retail inflation hitting a 17-month high, while WPI inflation fell to (—) 0.9 percent in January, reversing four months of rising trend.

Chinese shares bucked the uptrend to end lower after being closed for a long-holiday break, but the losses were minuscule compared with the recent global stock market rout.

Closer home, the benchmark BSE Sensex ended the session up 568 points or 2.47 percent at 23,554.12 while the broader Nifty index jumped 182 points or 2.61 percent to finish at 7,162.95.

Bank of Baroda shares soared as much as 23 percent after the PSU lender said it is confident of posting "reasonable level" of profit next fiscal following the clean-up of non-performing assets and reorganization exercise.

Vedanta climbed 17 percent after the company said it has reached an understanding with the Government of Odisha to commission an aluminum park in Jharsuguda.

Axis Bank, Tata Motors, Coal India, Adani Ports, SBI, Larsen & Toubro, Hindalco and Tata Steel jumped 6-13 percent.