The Sensex and Nifty closed higher today after inflation rate plummeted to an 18-month low, raising optimism that the Reserve Bank of India could ease monetary policy next month, as the economy faces a manufacturing slowdown and weak growth in the farm sector.
While the Sensex closed 464 points higher at 36,318, Nifty ended 149 points in the green at 10,886 level.
Of 30 Sensex stocks, 27 ended in the green.
YES Bank (3.86%), Infosys (3.66%) and Reliance Industries (3.02%) were the top Sensex gainers.
Top Sensex losers were Maruti (0.72%), ICICI Bank (0.23%) and PowerGrid (0.03%).
Top sectoral gainers were information technology stocks with the BSE index rising 423 points to 14,484 level.
All 19 sectoral indices ended in the green.
On Monday, after a volatile session, the 30-share index settled 156.28 points, or 0.43 per cent, down at 35,853.56, while the broader NSE Nifty fell 57.35 points, or 0.53 per cent, to finish at 10,737.60.
Banking stocks also contibuted to the gains with the BSE bankex rising 132 points to 30,681 level.
Oil and gas stocks also gained with the BSE index rising 222 points to 13,334.
Market breadth was positive with 1553 stocks closing higher compared with 1012 ending lower on the BSE.
Brent crude, used to price international oils, gained gained 71 cents to $59.70. It gave up $1.49 to $58.99 a barrel in London.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 732.46 crore on Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 527.49 crore, provisional data available with BSE showed.
The Wipro stock closed 5.62% or 17 points higher at 330.95 level on the BSE.
Bengaluru-based Wipro is considering a proposal to issue bonus shares, the second such by the software services provider in the last two years. The IT firm will announce its audited standalone and consolidated financial results for the quarter ended December 31, 2018 and declaration of interim dividend, if any, for the financial year 2018-19 on January 19.
The ICICI Securities stock closed lower in trade today after the investment services arm of ICICI Group reported a 34.3 per cent decline in consolidated profit to Rs 101.1 crore for the third quarter ended December 31. The company's profit stood at Rs 153.9 crore in the October-December quarter of 2017-18, ICICI Securities said.
The stock ended 5.45% lower at 261 level on the BSE.
The midcap stock touched an intra day low of 258.70, down 6.29% compared to the previous close of 276.05 level on the BSE.
The IndiaBulls Ventures stock closed 0.34% higher to 388.50 after it reported a rise in profit to Rs 349 crore in Q3 compared Rs 155 crore in the corresponding period of previous fiscal. Its revenue rose to Rs 1,379 crore in Q3 against Rs 588 crore on YoY basis.
Edited by Aseem Thapliyal