Markets rally for 3rd day amid positive global trends; RIL, banking stocks spurt

Equity benchmark indices rallied for the third day on the trot on Tuesday amid firm global market trends and buying in energy, banking and FMCG counters.

The 30-share BSE Sensex jumped 549.62 points or 0.94 per cent to settle at 58,960.60. During the day, it zoomed 732.68 points or 1.25 per cent to 59,143.66.

Similarly, the broader NSE Nifty surged 175.15 points or 1.01 per cent to end at 17,486.95.

State Bank of India (SBI) was the biggest gainer in the Sensex pack, climbing 3.41 per cent, followed by ITC, Nestle India, Bharti Airtel, IndusInd Bank, L&T, M&M and Reliance Industries.

Only five constituents finished in the red -- HDFC, NTPC, Tech Mahindra, Sun Pharma and HDFC Bank, slipping up to 0.72 per cent.

"The Indian market is sustaining its gains due to favourable global and domestic cues. Home-grown positivity is the downward trend of crude prices and upside prospects to Q2 corporate earnings.

"Notably too, RBI's confidence that headline inflation has peaked in September and henceforth will decline is taken cheerfully by the financial market, providing upside to banks," said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking Ltd, said the recent rebound in the markets can be largely attributed to the recovery in the global indices while the earnings have been mixed so far.

"Apart from the global markets, we feel participation of key sectors on a rotational basis would be critical for a sustained up move. Amid all positivity, traders should maintain their focus on overnight risk management," he added.

In the broader market, the BSE midcap gauge jumped 1.06 per cent and smallcap index climbed 0.71 per cent.

All BSE sectoral indices ended in the green, with capital goods climbing 1.97 per cent, realty jumping 1.76 per cent, industrials (1.71 per cent), auto (1.50 per cent), power (1.46 per cent), utilities (1.46 per cent), FMCG (1.22 per cent) and energy (1.13 per cent).

Other Asian markets in Seoul, Tokyo and Hong Kong ended with gains, while Shanghai settled lower.

Stock exchanges in Europe were trading in the positive territory in mid-session deals. Wall Street had ended significantly higher on Monday.

International oil benchmark Brent crude was trading 0.65 per cent lower at USD 91.02 per barrel.

The rupee pared its initial gains to close 7 paise down at 82.37 (provisional) against the US dollar in muted trade on Tuesday.

Foreign institutional investors (FIIs) remained net sellers in the Indian capital market on Monday as they offloaded shares worth Rs 372.03 crore, as per exchange data.


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