MUMBAI: Value buying, along with index rebalancing related inflows and buying before the financial year end, lifted India's key equity indices on Tuesday. Amongst global cues, the unblocking of Suez Canal and expected unveiling of an infrastructure plan from US President Joe Biden buoyed sentiments, despite concerns about a hedge fund default that shook global banking stocks.
In terms of domestic market, baring realty, all other sectors closed in the green. Gains were seen in IT, metals, pharma and FMCG stocks.
The S&P BSE Sensex closed higher by 1,128.08 points, or 2.30 per cent, at 50,136.58 points from its previous close.
The NSE Nifty50 on the National Stock Exchange traded at 14,845.10, up by 337.80 points, or 2.33 per cent, from its previous close.
"The unblocking of the Suez Canal and expected unveiling of an infrastructure plan from US President Biden buoyed sentiments on the street. Our markets reacted very favorably to the positive global cues and surged.
"Technically, with the Nifty surging higher and closing above the crucial 20-day SMA, the bulls seem to have an upper hand in the short term," Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, said.
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Indian markets are likely to track global cues in this truncated week of trade. All eyes will be on the US President who is due to deliver a speech on Wednesday unveiling his new $3 trillion infrastructure plan as part of his 'Build Back Better' agenda."
"Also with the financial year ending, investors would now focus on upcoming quarterly results which would begin in next 10-15 days. On the other hand, concerns over the fast spreading second wave of COVID in India continues to remain. Overall markets are likely to remain in a consolidative mode for some time awaiting for fresh positive triggers."
Vinod Nair, Head of Research at Geojit Financial Services, said: "Beating worries of increasing COVID cases and rising bond yields, the domestic market sparked a rally today as investors turned their focus to economic recovery supported by vaccination drives."
"Positive openings seen in Asian and European markets also helped in boosting optimism in the Indian market. Barring realty, all sectoral indices joined the rally with IT and pharma contributing the most." (IANS)
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