Stocks take a leap; stormy seas ahead

RIL, bank stocks boost indices by 1.8%, best gain in over 8 weeks, but volatility is rising 

- Harsha Jethmalani & Dipti Sharma

Energy and financials stocks propelled stock market indices to their best gain in over eight weeks on Monday, led by a rally in shares of index heavyweight Reliance Industries Ltd (RIL). Even as investor wealth in BSE-listed companies jumped by ₹6 lakh crore, the market may be headed for more volatile waters, with the National Stock Exchange's (NSE) VIX or fear index rising 13% on Monday.

The NSE's benchmark Nifty closed 1.8% higher at 21,737.60 points, while BSE's Sensex ended 1.76% higher at 71,941.57, their biggest gains since 4 December. The Reliance Industries stock climbed almost 7%, contributing the most to the day's market gains, as investors turned optimistic about potentially higher refining margins.

The RIL stock also got a boost from a Bloomberg report late last week that said Walt Disney Co.'s India unit may now be valued at less than half the valuation the US company earlier pursued in a proposed merger with its media business.