The Sensex and Nifty extended their rally for the second consecutive session buoyed by gains in banking and capital goods stocks. While the Sensex closed 481 points higher to 37,535, Nifty climbed 133 points to 11,301. Bharti Airtel (5.12%), IndusInd Bank (3.69%) and ICICI Bank (3.27%) were the top Sensex gainers.
The Bharti Airtel share price rose in trade today after a report said the telco would lower its direct stake in the telecom tower company Bharti Infratel by more than a half. Bharti Airtel share price rose 6.08% intraday to 354 level compared to the previous close of 333.70 on BSE.
Top Sensex losers were Bajaj Finance (1.30%), Infosys (0.67%) and NTPC (0.59%). On Monday, Sensex closed at 37,054.10, up by 382.67 points, or 1.04 per cent and Nifty ended at 11,168.05 points, up 132.65 points, or 1.20 per cent.
Meanwhile, the mid cap and small cap indices gained 98 points and 157 points each in trade today.
Market breadth was positive with 1653 stocks closing higher compared to 1067 falling on the BSE.
Banking and capital goods stocks led the gains with their indices rising 531 points and 400 points, respectively on the BSE.
Bank Nifty hit its all-time high of 28,488 rising 522 points compared to its previous close of 27,966 level. All 19 sectoral indices except IT stocks ended in the green. The BSE IT index closed 32 points lower at 14,989.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3810 crore on Monday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1955 crore, provisional data available with BSE showed.
Here are four factors which fuelled the rally today.
FII inflows: Foreign investors have become bullish on the Indian stock markets infusing Rs 7,943 crore in just eight trading sessions this month. The amount is more when compared with Rs 12,052 crore FII inflows in 20 trading sessions last month.
Poll predictions: Some poll experts have predicted the BJP government would return to power in Lok Sabha elections 2019 which have led the traders to make bullish bets on the markets. This in turn has fuelled a huge rally on Sensex and Nifty. While the Sensex has gained nearly 900 points in the last two days, Nifty rose 265 points on the bullish sentiment after the announcement of dates of Lok Sabha polls 2019.
Strong rupee: The Indian currency rose 39 paise intra day in trade today to 69.49 level on growing demand for the home currency against the dollar. The rise in local currency boosted sentiment in the equity market.
Global markets: Indian markets charted their course following buying activities in global markets today. Asian stocks followed Wall Street higher on Tuesday as investors awaited Britain's vote on a plan to leave the European Union. The Shanghai Composite Index rose 2.2 percent to 3,092.99 points and Tokyo's Nikkei 225 gained 1.9 percent to 21,530.17.
Hong Kong's Hang Seng added 1.5 percent to 28,912.55 and Seoul's Kospi was 0.8 percent higher at 2,155.80. Sydney's S&P-ASX 200 advanced 0.1 percent to 6,186.00 and markets in New Zealand, Taiwan and Southeast Asia also rose.
Tech stocks drove the benchmark Standard & Poor's 500 index to its biggest daily gain since January, snapping a five-day losing streak for the S&P, which was coming off its worst weekly stumble this year. The S&P 500 gained 1.5 percent to 2,783.30. The Dow Jones industrial average rose 0.8 percent to 25,650.88. The Nasdaq composite jumped 2 percent to 7,558.06.
Edited by Aseem Thapliyal