Mumbai, Aug 25
The Indian equity indices settled in the positive territory on Monday amid expectations around a rate cut by the US Federal Reserve next month.
Buying in IT heavyweights remained the key reason behind the rally.
Sensex ended the session at 81,635.91, up 329.06 or 0.40 per cent. After a sharp decline in the last session, the 30-share index opened with a decent gap-up at 81,501.06 against the previous session's closing of 81,306.85. The index further escalated the momentum to touch an intraday high at 81,799.06 but remained range-bound.
Nifty closed 24,967.75, up 97.65 points or 0.39 per cent.
"A wave of optimism swept through the domestic market, driven by expectations of a Fed rate cut in September and a subsequent decline in the US 10-year yield," said Vinod Nair, Head of Research, Geojit Investments Limited.
The IT index outperformed, buoyed by favourable global sentiment. The domestic levers stay positive with the proposed GST rationalisation to push consumption demand, and a good monsoon season could serve as a catalyst to navigate any uncertainty in the global trade environment, he added.