Mumbai, Feb 16 (PTI) Equity benchmark indices Sensex and Nifty rebounded sharply by nearly 1 per cent on Monday, driven by strong buying in power, banking, and financial stocks.

Snapping its three-day decline, the 30-share BSE Sensex jumped 650.39 points, or 0.79 per cent, to close at 83,277.15.

The 50-share NSE Nifty advanced 211.65 points, or 0.83 per cent, to settle at 25,682.75.

PowerGrid emerged as the top gainer in the Sensex pack, rising 4.45 per cent, followed by HDFC Bank, Axis Bank, NTPC, ITC, Asian Paints, Bajaj Finserv, Bharti Airtel, Adani Ports, Tata Steel, Kotak Mahindra Bank, Reliance Industries and State Bank of India.

On the other hand, Tech Mahindra, Maruti Suzuki India, Bajaj Finance, Trent, Mahindra & Mahindra, Titan, Infosys, ICICI Bank, and UltraTech Cement were the laggards.

"After a range-bound opening, domestic markets edged higher, supported by renewed buying interest in banking and power stocks. The power sector gained on expectations of sustained demand momentum. At the same time, improved loan growth and stable asset quality bolstered confidence in banks," Vinod Nair, Head of Research, Geojit Investments Ltd, said.

In global markets, a continued decline in the US 10-year yield following benign inflation data strengthened expectations of a Fed rate cut later this year, with investors now closely awaiting the upcoming Fed minutes for further direction.

"Meanwhile, stability in the rupee and range-bound crude oil prices ahead of US-Iran talks are offering additional support to domestic equities," Nair said.

The broader Asian markets ended on a mixed note. Hong Kong's Hang Seng benchmark rose 0.52 per cent, while Japan's Nikkei 225 index slipped 0.22 per cent. Markets in China and South Korea remained closed for the Lunar New Year holidays.

European markets are trading higher in mid-session deals. US equities ended on a mixed note on Friday.

Foreign institutional investors sold equities worth Rs 7,395.41 crore on Friday, while domestic institutional investors purchased stocks worth Rs 5,553.96 crore, according to the exchange data.

Brent crude, the global oil benchmark, fell 0.24 per cent to USD 67.59 per barrel.

On Friday, the 30-share BSE Sensex tumbled 1,048.16 points to close at 82,626.76, while the 50-share NSE Nifty plunged 336.10 points to settle at 25,471.10. PTI HG HG BAL BAL BAL

Market rebound as banking and power stocks lead recovery amid global rate-cut expectations and stable currency support. Equity benchmarks rebounded nearly one percent led by renewed buying in banking and power stocks, reversing a recent decline as large-cap financials and utilities outperformed. The rally was supported by expectations of sustained power demand, improving loan growth and stable bank asset quality. Macro cues-falling US long-term yields, a stable rupee and steady crude oil-added support, while foreign institutional investors were net sellers and domestic institutional investors were net buyers.