Benchmarks Sensex and Nifty closed higher on Tuesday, backed by heavy buying in banking and financial stocks, amid stock-specific action on back of March quarter earnings.
Extending rise for the second consecutive session, Sensex ended 371 points or 1.17% higher at 32,114 and Nifty rose 98 points or 1.06% to 9,380.
Sensex and Nifty have risen 4.82% and 4.45% in one week, 7.71% and 8.32% in one month. Since the beginning of this year, both bourses have fallen over 22% each.
Financial stocks continued upward momentum for the second session today, with IndusInd Bank, Axis Bank, HDFC, Bajaj Finance, Bajaj Finserv, ICICI Bank, Kotak Bank, Cholamandalam Investment and Finance and SBI being top gainers on Sensex. March quarter earnings' announcement by IndusInd Bank and pre-earnings rally in Axis Bank also helped in momentum, experts said.
Barring FMCG, auto, energy and pharma, all other indices closed in the green, with almost 3% gains in banking and financial indices.
S Ranganathan, Head of Research at LKP Securities said,"Market today on the back of a ferocious afternoon move by Financials. HDFC Ltd & Bajaj Finance led the charge which was well-supported by Axis Bank and IndusInd Bank. De-Leveraging exercise from RIL through a planned Rights Issue also helped markets held on to its gains".
Domestic markets witnessed choppiness in Tuesday's afternoon session, in line with Asian markets that fell with a drop in oil prices.
European markets opened a tad higher on Tuesday following cues from Asian counterparts, barring CAC that fell 0.17% at open.
Oil continued its downward move, after falling 6.8% on Monday over fears that global oil storage capacity could be over in few weeks due to weak demand.
However, overseas markets recovered in trade by the afternoon session with Brent crude futures recovering from 4% fall and trading 2.20% higher at $20.43 a barrel. As per commodity experts, oil prices recovered from losses in Tuesday's trade on hopes of easing of lockdown .
US indices closed in the green on Monday as investors were optimistic over prospects of eased lockdowns and more stimulus from central banks.
Two-day FOMC meeting will start today. Investors overseas are awaiting the outcome of various global central bank meetings, in a move to reboot economy post-covid-19.
Indian rupee, the local currency rose from early losses and settled at day's high of 76.19 per dollar as against the previous closing value of 76.24 per US dollar.
Vinod Nair, Head of Research at Geojit Financial Services said,"Stock specific news reactions is happening based on the results and management commentary. The sustainability of this rally depends on the easing of lockdown measures and the measures to get businesses back on track."
According to Ruchit Jain, Equity Technical Analyst at Angel Broking, a breakout beyond 9400 should lead to an up move in the index towards 9600-9700. The immediate supports for Nifty are now placed around 9250 and 9140, he further added.
Globally, there are currently 30.65 lakh confirmed cases and 2.11 lakh deaths from the coronavirus COVID-19 outbreak. The total number of cases in India has reached 28,380, including 6,362 recoveries or and 886 deaths.