The Sensex on Monday’s trading gained by 241.31 points or 1.00% to close at 24,363.05 points, a new closing high for the index. The Nifty gained by 60.55 points or 0.84% to close at 7,263.55 points.

“Markets continued to extend the rally that they had seen on pre-election and on the election-verdict day,” says Amar Ambani, Head of Research, IIFL on the Modi wave boosting markets. “Tracking global cues, the markets opened with a positive note but profit booking dragged the markets down to some extent,” says Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.

However, there was severe volatility in the markets with the Sensex swinging by 341 points between the day’s high and low points.

“Buying was seen in the beaten down old economy stocks (power, metals etc) and expectation of sustained FII (Foreign Institutional Investor) fund flow helped the markets to regain the momentum,” explains Mathews of the recovery in the markets. Also the uptrend in the infra and power stocks on the hope of development in the old economy sectors on strong support of the stable government helped the markets.

Market sentiment further got a boost as the Indian rupee continued to strengthen against the US Dollar.

Old economy sectors like Power (up 10.15%) Capital Goods (up 8.34%), Metal (up 6.81%) and Oil & Gas (up 5.26%) indices were up on Monday.

However, defensive sectors like IT (down 4.95%), FMCG (down 4.00%) and healthcare (down 3.66%) fell on Monday.

The broader markets outperformed the indices with the Mid Cap (up 4.19%) and small cap (up 5.82%) gaining. Of the companies that were traded on the BSE on Monday the share prices of 2,212 companies gained, while the share prices of 795 companies fell. The share prices of 120 companies were unchanged.

BHEL gained by 16.94% to close at Rs 268 as the company signed an initial agreement with PT Star Vyobros, Indonesia for setting up a 200 MW coal fired plant in the island nation.

Dena Bank gained by 13.27% to Rs 78 as the bank plans to increase its post tax profit growth by 20% this financial year. The bank registered a growth of 15% in advances and 13% in deposits in Financial Year 14.

Mahindra Lifespace gained by 1.69% to Rs 423 as the company acquired around 550 acres of land in the Northern part of Chennai to set up its second integrated business city, Mahindra World City, in the state.

“Market participants, should now focus on stock specific trading as we expect the markets to consolidate the recently accumulated gains,” says Jayant Manglik, President-retail distribution, Religare Securities.