MUMBAI: Indian indices recovered from the budget blues on Monday with the benchmark index Sensex gaining 137 points to close at 39,872.31 points and the 50-share NSE Nifty advancing 46.05 points or 0.39 per cent to end the day at 11,707.90.  It is to be noted that markets had opened in red after witnessing a bloodbath on Saturday (February 1).


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"With valuations on the higher side, the on-going results reported has been mostly inline with estimates. Manufacturing PMI shows notable rebound providing a breather that economy will stabilise as mentioned in the budget," Vinod Nair, Head of Research at Geojit Financial Services told IANS.


ITC stocks touched a 52-week low on Monday due to the government's decision to impose a hike in tax on tobacco and cigarettes. ITC closed 4.61 per cent lower at Rs 215 a share. Bharti Infratel Limited lost over 6 per cent while Yes Bank declined nearly 5 per cent.


"We believe absence of any major announcements in the budget may weigh on investor sentiments in the short-term and we may continue to witness volatility. On the global front too, while liquidity boost of $173 bn by China`s central bank is a good sign, rising concerns regarding coronavirus may continue to cause uncertainty in the markets," said Ajit Mishra, VP - Research, Religare Broking, to IANS.