The market gained strength ahead of gross domestic products (GDP) growth data led by banks, capital goods and pharma stocks. The Bank Nifty rallied at 2 percent.
On the performance of Bank Nifty, Ashwani Gujral, in conversation with CNBC-TV18, said market stabalisation scheme (MSS) news was the macro trigger that Bank Nifty was looking for.
He said that the way private banks have corrected a lot of the froth is out of these banks. He took a buy call on Kotak Mahindra Bank, ICICI Bank.
Maintaining a positive stance, SP Tulsian betted on ICICI Bank and Yes Bank in the private sector space and amongst the public sector banks his buying call was on State Bank of India (SBI) and Punjab National Bank (PNB).
Mitesh Thacker of miteshthacker.com said that the Nifty bounce back is still continuing and there is a good chance to head towards 8300 mark.
The auto stocks also saw a rebound. Maruti stocks rallied 7 percent in the last two days. Deepak Shenoy of capitalmind.in said that the auto sector recovery will be known in the next 3 days.
He said much of the luxury end will suffer more. Two-wheelers might pick up faster than four-wheelers.
Consumption space has seen a firm rebound in the last couple of days.
Varun Goel of Motilal Oswal AMC, says that most of the consumption related stories are going to see 5-7 percent cut in earnings growth for FY17. So there has to be a re-rating downwards.
A rate cut is also expected on December 7. He said probably the asset quality is going to get better and on the corporate loan side things might turn positive.
"We continue to bet largely on housing finance space," said Goel.
Cement stocks also performed well. Tulsian betted on Ramco Cements, India Cements, Kesoram and Century Textile in the mid-size capacity and Ultratech in the large size capacity.
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