Benchmark indices ended higher for the second straight session today on heavy buying in banking and finance stocks. Sensex climbed 557 points to 48,944 and Nifty surged 168 points to 14,653.
Reliance Industries too helped the bulls gain ground with the stock ending 2.66% or Rs 51.45 higher at Rs 1,988 on BSE.
L&T was the top Sensex gainer climbing 3.33 per cent, followed by Bajaj Finance, Reliance Industries, IndusInd Bank, SBI, HDFC Bank and Bharti Airtel.
On the other hand, Maruti Suzuki was the biggest loser, falling 1.24 per cent, after the country's largest carmaker reported a 6.14 per cent decline in consolidated net profit at Rs 1,241.1 crore for the March quarter.
NTPC, Kotak Bank, Nestle India, M&M, Dr Reddy's and Axis Bank were the other laggards, shedding up to 0.54 per cent.
"Persistent strength in US markets has rubbed off on Indian stocks, with dip in treasury yields ahead of FOMC decision also helping the overall risk appetite," said Anand James, Chief Market Strategist at Geojit Financial Services. "However, with April derivative expiry approaching, and with Nifty option premiums not pricing much above 14,700 for now, caution is recommended," he added.
BSE midcap and smallcap indices rallied 208 points and 316 points, respectively.
India reported more than 3 lakh coronavirus cases for the sixth consecutive day. The total tally of COVID-19 cases has climbed to 1,76,36,307, while the national recovery rate has further dropped to 82.54 per cent, according to the Union Health Ministry data updated on Tuesday. The death toll mounted to 1,97,894 with 2,771 new fatalities.
However, this failed to deter positive sentiment in the market with 1,921 stocks closing higher and 1,037 shares ending lower on BSE. Market cap on BSE climbed Rs 2.44 lakh crore to end at Rs 206.58 lakh crore.
Commenting on the outlook for Nifty, Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "The bearish pattern of sell on rise has been negated and a sustainable upside bounce was seen from the lower range of 14,200. This is positive indication and one may expect Nifty to test the upper range of 14900-15000 levels in the next one week. Any intra-week dips down to the support of 14500-14400 levels could be a buying opportunity."
Wall Street futures were higher after the benchmark S&P 500 index rose 0.2% on Monday as gains for tech, bank and consumer stocks outweighed declines in health care shares. In early trading, the DAX in Frankfurt sank 0.2% to 15,272.83 while the FTSE in London was down less than 0.1% at 6,958.92. The CAC 40 in Paris gained less than 0.1% to 6,276.87.
In Asia, the Shanghai Composite Index closed less than 0.1% higher at 3,442.61 after spending most the day in negative territory. The Hang Seng in Hong Kong lost less than 0.1% to 28,941.54. The Nikkei 225 in Tokyo lost 0.5% to 28,991.89 after the Bank of Japan, as expected, left interest rates and other policy settings unchanged.