Sensex roars with gains, Nifty eyes 8600; SBI, Tata Steel up 8%

11:30 am Market outlook: Speaking to CNBC-TV18 Manish Gunwani of ICICI Prudential Mutual Fund said that there is an upward movement seen in bond yields globally. Ultimately, it is about eanrings growth, he said. He doesn’t think there is a case yet for a P/E (price to earnings) re-rating. He believes in the short term both GST and demonetisation moves will have an impact. “These big reforms will hit earnings in this quarter or another quarter, there is no denying it. It is a big structural positive,” he said. The part of growth that is seen now is commodity intensive. “If positioning translates into action you can see material intensive growth coming back.”Don't miss: Sun Pharma Q2 profit seen up 52%, US sales may drive revenue

After badly bruised yesterday, the market is picking up pace as investors are actively buying. The Sensex is up 471.03 points or 1.7 percent at 27723.56 and the Nifty is up 158.05 points or 1.8 percent at 8590.05. About 1971 shares have advanced, 310 shares declined, and 84 shares are unchanged.

SBI, Tata Steel, Cipla, ICICI Bank and Adani Ports are top gainers while HDFC Paints, Infosys, HDFC, Wipro and Hero MotoCorp are losers in the Sensex.

Gold held steady early after briefly surging to a six-week high in the previous session, as global markets and the US dollar showed surprise gains in the wake of Republican Donald Trump's presidential victory. Donald Trump's victory in the US presidential race throws into question the core assumption in global financial markets that the Federal Reserve will raise interest rates soon and follow with further gradual hikes over coming years.