The benchmark Bombay Stock Exchange (BSE)Sensex snapped its three-day losing streak on Tuesday as the index jumped 219.39 points, or 0.81 per cent, to close the day at 27,331. During April 22 and April 27, the index lost 713 points.
The CNX Nifty index on the National Stock Exchange gained 71.80 points, or 0.87 per cent, to close the day at 8,285.60.
Experts believe attractive valuation coupled with buying in banking stocks uplifts market mood.
Among the sectoral indices on the Bombay Stock Exchange, the S&P BSE Bankex jumped the most 2.41 per cent to 20,890.63. It was followed by the S&P BSE Auto index (up 2.24 per cent to 18,636.12), S&P BSE Realty index (up 1.6 per cent to 1,535), S&P BSE Power index (up 1.4 per cent to 2,094.18).
On the other hand, the S&P BSE FMCG index and S&P BSE Information Technology index declined 0.73 per cent and 0.39 per cent to 7,827.50 and 10,449.94, respectively.
Prakash Diwan, director, Altamount Capital Management, said, "Buying in banking stocks, short covering in the last half an hour of the trading session, buoyant quarterly results and attractive valuation supported market sentiments."
Devang Mehta, senior VP and head equities sales, Anand Rathi Financial Services seconds Diwan and said, "Attractive valuations along with short covering and robust guidance figures by companies helped the benchmark indices to snap a three-day losing streak."
From the Nifty basket, share price of ICICI Bank (up 7.72 per cent to Rs 325.65), Idea Cellular (5.57 per cent to Rs 196.10), Maruti Suzuki India (up 4.98 per cent to Rs 3,830), BPCL (3.58 per cent to Rs 758.50) and Tech Mahindra (up 3.39 per cent to Rs 607.15) were among the top gainers.
On the other hand, ITC (down 2.71 per cent to Rs 335.50), HCL Technologies (down 1.95 per cent to Rs 866), Coal India (down 1.50 to Rs 372), Reliance Industries (down to Rs 1.42 per cent to Rs 862.90) and Infosys (down 1.40 per cent to Rs 1,956.90) were among the notable losers on the Nifty.
On the performance of ICICI Bank and Maruti Suzuki, Rakesh Goyal, senior vice president, Bonanza Portfolio, said, "ICICI bank rallied due to value buying on the D-street. Maruti Suzuki too continued its surge on the back of better-than-expected Q4 results."
The overall market breadth was positive on the BSE as 1,633 stocks advanced while 1,091 declined.
According to the website of NSDL, FIIs stood net sellers in the capital markets segment, sold shares worth Rs 1,600 crore.
Asian peer markets, Nikkei and Hang Seng were up by 0.38 per cent and 0.03 per cent, respectively, while Shanghai was down by 1.14 per cent for the day.