New Delhi, April 22 (IANS): Financials led the market rally on Monday with the BSE Sensex gaining more than 500 points.

Axis Bank, Bajaj Finance, SBI led the Sensex rally with gains of more than 2 per cent each.

L&T, Ultratech Cement, Wipro also gained more than 2 per cent.

Rupak De, Senior Technical Analyst, LKP Securities said the bulls continued to dominate the market as the Nifty gained for the second consecutive session. The trend has turned positive after reclaiming a critical near-term moving average.

Sentiment is expected to remain favourable for bulls as long as it stays above 22,150. On the upside, the index could potentially move towards 22,600-22,700. Conversely, a drop below 22,150 could lead to consolidation in the index, he said.

Vinod Nair, Head of Research, Geojit Financial Services, said the Indian market extended last Friday's relief rally as Middle East tension saw some respite, though the situation remains fluid. The recovery was broad-based across sectors, with renewed interest in mid and small-caps.

Gold and oil prices showed some relief but are still at elevated levels. Hawkish remarks from the US Fed, driven by persistent inflation and robust economic data, spurred a rally in bond yields. The prevailing higher interest rate environment is expected to persist longer than expected which, along with the moderating earnings growth, suggests a continuation of the consolidation in the near-term, he said.